Jakarta to collect value-added tax from online food service

Jakarta – The Jakarta Regional Revenue Agency (Bapenda) of Indonesia has planned to introduce a new policy on regional taxes and levies, which will impose a 10 per cent value-added tax rate on online food services.

Head of Bapenda Lusiana Herawati said the tax policy for online food supply and delivery services is appropriate and does not need further discussion, adding that this has been stated in regional tax regulations.

Authorities are currently making statistics on online food stores and determining the proportion of this business activity in the economic sector to accurately forecast tax rates, Herawati said.

Bapenda will discuss tax collection mechanisms with the Ministry of Home Affairs and the Ministry of Finance before actual application so as not to affect the business operations of stores, she added.

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Chairman of the Indonesian Iron and Steel Industry Association (IISIA) Purwono Widodo on November 7 said that the Southeast Asian country’s steel demand surges in 2023 due to the construction of major national projects.