Pekanbaru vendors oppose food tax

The Riau Food Stalls Association (Asamari) has demanded that the local administration drop consideration of a proposed bylaw that would levy a tax on customers eating at hotels, restaurants and food stalls.

Under the proposed bylaw, owners of sidewalk food stalls, canteens and restaurants will have to pay a tax amounting to five percent of the costs paid by customers.

Representatives of Asmari rallied in front of the local legislative council in Pekanbaru over the weekend.

Asamari secretary Dian Fitra said that food stall and canteen owners opposed the bylaw out of fear it would be used by the local administration to force them to pay taxes.

“Imposing such tax collection duties on owners of sidewalk food stalls and canteens is improper. Customers eat simply because they want to fill their stomachs. It’s illogical to ask for money for the tax from customers who mostly come from the low-income bracket,” Dian said.

Besides burdening consumers, the bylaw would also kill small businesses run by ordinary people, she said.

“Even without the imposition of the levy, it has already been difficult for stall owners to make a profit. If the bylaw is enacted, many stall owners fear they will go bankrupt as prices will automatically increase,” she said.

Asamari has asked local legislators to stop deliberating the draft bill proposed by the Pekanbaru administration, Dian said.

“We’ve explained that collecting such a levy does not effectively solve problem of regional income generation, but no response has been made,” Dian said.