Supreme Courtâ€™s Verdict On VAT May Threaten Cocoa
Senin, 11 Agustus 2014 | 14:01
The verdict issued by the Supreme Court (MA) regarding the imposition of Value Added Tax (VAT) against primary products may threaten cocoa downstream program.Chairman of Indonesian Cocoa Industry Association (AIKI) Piter Jasman said the verdict would bring the increase of seeds products export performance.
“The Supreme Court should observe the matter comprehensively, not only the purpose of palm industry and immolate other agro industries. Generally, the palm industry is integrated while other agro industries are not,” said Piter in a short text as received by Indonesia Business Daily, Saturday (8/9/2014).
In addition, the imposition of VAT would cause other agro industries are difficult to compete and eventually fall. The industries should provide much larger capital especially by the time of harvest period for stock, not included the high interest cost, import duty for raw materials of 5% and processed products in Indonesia.
AIKI expects the government and the Supreme Court to review the verdict in order to guarantee the success of product down streaming program, agro industry continuity, as well as competitiveness increase for 2015 AEC (Asean Economic Community).
by Rio Sandy Pradana