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GOVERNMENT REGULATION NO. 43/2002
CONCERNING ON
THE AMENDMENT TO GOVERNMENT REGULATION NO. 12/2001
ON THE IMPORT AND/OR DELIVERY OF CERTAIN STRATEGIC TAXABLE GOODS EXEMPTED FROM VALUE ADDED TAX
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering :
a. that the classification of certain strategic taxable goods the import and delivery of which is exempted from value added tax based on Government Regulation No. 12/2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax is merely intended for temporary need;
b. that to give a sense of Justice and legal certainty as well as to avoid any effort to deviate from the purpose and aim of granting taxation facilities in the form of value added tax exemptions, it is necessary to review the types of certain strategic taxable goods exempted from value added tax;
c. that based on the considerations in letter a and b, it is deemed necessary to stipulate a government regulation on amendment to Government Regulation No. 12/2001 on the import and/or delivery of certain strategic tax-able goods exempted from value added tax;
In view of :
1. Article 5, paragraph (2) of the 1945 Constitution as has been amended through the third amendment to the 1945 Constitution;
2. Law No. 6/1983 on general provisions and taxation procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as has been several times amended the latest by Law No. 16/2000 (Statute Book of 2000 No. 126, Supplement to Statute Book N 3. 3984);
3. Law No. 8/1983 on value added tax and sales tax on luxury goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264) as has been several times amended the latest by Law No. 18/2000 (Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
4. Government Regulation No. 12/2001 on the import and/ or delivery of certain strategic taxable goods exempted from value added tax (Statute Book of 2001 No. 24, Supplement to Statute Book No. 4083);
DECIDES:
To stipulate :
GOVERNMENT REGULATION
ON AMENDMENT TO GOVERNMENT REGULATION NO. 12/2001
ON THE IMPORT AND/OR DELIVERY OF CERTAIN STRATEGIC TAXABLE GOODS EX-EMPTED FROM VALUE ADDED
TAX
Article I
Several provisions in Government Regulation No. 12/2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax shall be amended as follows :
1. Provisions in Article 1, point 1, letters a, e, and f shall be abolished so that Article 1 entirely reads as follows :
Article 1
Hereinafter referred to as :
1. Certain strategic taxable goods shall be :
a. abolished;
b. animal, poultry and fish feed, and/or raw materials for the manufacture of animal, poultry and fish feed;
c. farm product;
d. seeds and/or seedlings of agricultural, plantation, forestry, husbandry, breeding or fishery commodities;
e. abolished;
f. abolished;
g. clean water distributed through pipes by the Drinking Water Company; and
h. electrical power, except that for household with a capacity of more than 6600 watts.
2. Farm product shall be goods resulting from business activities in the fields of :
a. agriculture, plantation and forestry;
b. husbandry, hunting or catching, or breeding; or
c. fishery, either catching or farming.
3. Farmers shall be the people carrying out business activities in the fields of agriculture, plantation, forestry, husbandry, hunting or catching, breeding, fish catching or farming."
2. Provisions in Article 2, paragraph (1), letters a, d and e, as well as paragraph (2), letters a, c and f shall be abolished so that Article 2 entirely reads as follows :
Article 2
(1) The import of certain strategic taxable goods in the form of :
a. abolished;
b. animal, poultry and fish feed, and/or raw materials for the manufacture of animal, poultry and fish feed, as referred to in Article 1, point 1, letter b;
c. seeds and/or seedlings of agricultural, plantation, forestry, husbandry, breeding, or fishery commodities as referred to in Article 1, point 1, letter d;
d. abolished;
e. abolished;
shall be exempted from value added tax.
(2) The delivery of certain strategic taxable goods in the form of :
a. abolished;
b. animal, poultry and fish feed, and/or raw materials for the manufacture of animal, poultry and fish feed, as referred to in Article 1, point 1, letter b;
c. farm product as referred to in Article 1, point 1, letter c, by farmers or groups of farmers;
d. seeds and/or seedlings of agricultural, plantation, forestry, husbandry, breeding, or fishery commodities as referred to in Article 1, point 1, letter d;
e. abolished;
f. abolished;
g. clean water distributed through pipes by the Drinking Water Company as referred to in Article 1, point 1, letter g; and
h. electrical power, except that for household with a capacity of more than 6600 watts as referred to in Article 1, point 1, letter h;
shall be exempted from value added tax."
3. Provisions in Article 4 shall be abolished.
Article II
With the enforcement of this Government Regulation :
1. In case capital goods in the form of machine and factory equipment, either in the state of being installed or separated, excluding spare parts, already exempted from value added tax under Government Regulation No. 12/ 2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax, are found being used in defiance of the original purpose or being transferred to other party partially or wholly within a period of 5 (five) years after the date of import or acquisition, the value added tax shall be paid within a period of 1 (one) month after the capital goods are used in defiance of the original purpose or transferred to other party.
2. In case raw materials for the manufacture of rupiah bank notes and coins already exempted from value added tax under Government Regulation No. 12/2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax are found to have not been used as raw materials for the manufacture of rupiah bank notes and coins, the value added tax shall be paid within a period of 1 (one) month after the use of the raw material for the manufacture of rupiah bank notes and coins is diverted.
3. If after the periodic of 1 (one) month as referred to in points 1 and 2 the value added tax has not been paid, the Director General of Taxation shall issue underpaid tax assessment form and impose sanction within the framework of the existing rules.
4. The value added tax payment as referred to in points 1 and 2 not be credited as input tax.
Article III
This Government Regulation shall begin to take effect 10 (ten) days after the date of stipulation.
For public cognizance, this Government Regulation shall be promulgated by placing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
On July 23, 2002
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
MEGAWATI SOEKARNOPUTRI
Promulgated in Jakarta
On July 23, 2002
THE STATE SECRETARY
BAMBANG KESOWO
STATUTE BOOK OF THE REPUBLIC OF INDONESIA OF 2002 NUMBER 82
ELUCIDATION
GOVERNMENT REGULATION NO. 43/2002 ON AMENDMENT TO GOVERNMENT REGULATION NO.12/2001 ON THE IMPORT AND/OR DELIVERY OF CERTAIN STRATEGIC TAXABLE GOODS EXEMPTED FROM VALUE ADDED TAX
G E N E R A L
To implement provisions in Article 16B of Law No. 8/1983 on value added tax and sales tax on luxury goods as has been several times amended the latest by Law No. 18/2000, Government Regulation No. 12/2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax has been stipulated.
Under the Government Regulation, types of certain strategic taxable goods exempted from value added tax have been stipulated after consulting the House of Representatives. The granting of this taxation facility has from the beginning been designed for temporary need.
To give justice and legal certainty as well as to ensure that the granting of taxation facility in the form of value added tax exemption will not deviate from the purpose and aim of granting the taxation facility, it is necessary to review Government Regulation No. 12/2001 on the import and/or delivery of certain strategic taxable goods exempted from value added tax.
ARTICLE BY ARTICLE
Article I
Point 1
Article 1
Sufficiently clear.
Point 2
Article 2
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letters a and b
Sufficiently clear.
Letter c
The farm product exempted from value added tax shall be the farm product directly picked, taken or tapped from its sources, including its processed commodity obtained by :
- dehydrating it by means of sun heat or other means;
- chopping it;
- pickling or salting it;
- freezing or refrigerating it;
- breaking it;
- washing or sterilizing it;
- soaking or boiling it;
- slicing, peeling or splitting it;
- ripening it;
- scratching it;
- separating it from its skin, kernel or stem; or
- packing it in such a simple way to protect it, delivered by farmers or groups of farmers. Letters d up to f
Sufficiently clear.
Letter g
Referred to as drinking water company shall be government-owned and/or privately-run drinking water company.
The definition of clean water distributed through pipes by the drinking water company the delivery of which is exempted from value added tax shall include clean water delivered by other means such as tank truck.
Letter h
Sufficiently clear.
Point 3
Sufficiently clear.
Article II
Point 1
To prevent the abuse of imported and/or delivered capital goods in the form of machine and factory equipment which before the enforcement of this Government Regulation have been exempted from value added tax under Government Regulation No. 12/2001 on the import and/ or delivery of certain strategic taxable goods exempted from value added tax, this Government Regulation deals with sanction imposed on the importer or buyer of capital goods in the form of machine and factory equipment who is found diverting the use of the capital goods from the original aim or transferring the capital goods to other party, either partially or wholly.
Point 2
To prevent the abuse of imported and/or delivered raw materials for the manufacture of rupiah bank notes and coins which before the enforcement of this Government Regulation have been exempted from value added tax under Government Regulation No. 12/2001 on the import and/ or delivery of certain strategic taxable goods exempted from value added tax, tins Government Regulation deals with sanction imposed on the importer or buyer of raw materials for the manufacture of rupiah bank notes and coins who is found using the raw materials other than for the manufacture of rupiah bank notes and coins.
Points 3 and 4
Sufficiently clear.
Article III
Sufficiently clear.
SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NO. 4217
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