Warteg Tax

Warung Tegal (Warteg) originated from the words Warung i.e a small and simple place that sells cheap foods/drinks, and Tegal i.e name of a  town in Central Java.

In Jakarta and vicinity, Warteg is very popularly known as small and simple places that sell cheap foods/drinks on the sides of streets, where people of low-to-medium level income eat and drink.

But next year, the prices of food and drinks in Warteg would not be as cheap as they used to be, because starting 1 January, the Provincial government of Jakarta plans to collect Tax of 10% on every food and drinks sold there.

According to an officer of the Jakarta Tax Service Agency, there are now are now around 2,000 Warteg in Jakarta, but based on the Regional Tax Law No. 28/2009, only those who earn an income of Rp 60 Million a year or Rp 5 Million a month will be taxed. Right now the agency is still studying how many Warteg will be taxed, but they expect to collect Rp 50 Billion from Warteg.

This plan has been protested by many people including members of parliament of Jakarta who demanded that the minimum taxable income should be higher and starting date of collection should be postponed. .

In reaction to the protests, the Governor of Jakarta Fauzi Bowo said that the the Warteg Tax plan is still not fixed.

I hope that the Warteg Tax plan would be reviewed very carefully especially because consumers of Warteg are people of low-to-medium level income. 

Sources :
-  Warung Tegal Kena Pajak 10% (Pajak.com)
-  Warung Kecil Jangan Dibebani Pajak (Kompas)
-  Fauzi Bowo : Pajak Warteg Baru Wacana (VIVAnews)

Photo:  Courtesy of Antara