The Indonesian government will be imposing a new Value Added Tax (VAT) on plastic surgeries for beauty purposes in the country soon. As reported by CNN Indonesia, the Republic’s Finance Ministry confirmed the move via a statement on 24 June 2021.
The Indonesian Finance Ministry defended the move by saying that beauty plastic surgeries can only be afforded by certain groups who are rich, hence a VAT on such activities is more than justified. This move came after the Republic abolished several VAT exemptions on a number of goods and services, one of which is health and services. Therefore, these services will be taxed to the public in Indonesia.
However, the Indonesian Finance Ministry clarified that the imposition of taxes would not target all health services but instead only certain health services other than basic needs.
For illustration purposes.
Besides health services, the Republic would also start imposing VAT on goods and education services. Moreover, agricultural products for the purposes of import will also be taxed but not on those meant for the domestic market. The Indonesian Finance Ministry clarified,
“VAT would not be imposed on basic necessities sold in traditional markets, educational services that is carried out by humanitarian social services (non-commercial) and health services paid for through the Indonesia’s national Social Security Administration Agency.”
The Ministry also specified that the amount of VAT imposed would vary according to the product and service. Lower tax would be imposed for basic goods while higher end products will accrue higher VAT value.
For illustration purposes.
What do you guys think of Indonesia’s new VAT laws? Share your thoughts with us in the comments.
Also read: Young People In China Are Getting ‘Elf Ear’ Procedures To Look Thinner & Slimmer
