"Wartegs" are The Jakarta's Economic Buffer

Jakarta, Indonesia (News Today) - Small food vendors like "Wartegs" in Jakarta and other cities in Indonesia were most likely regarded as an economical buffer. Therefore it was inappropriate to collect tax from them, a government official said.

"Wartegs have become the city’s buffer belt. They do not only represent a low economic level symbol but also serve the limited economy of the city’s population," Democrat Party Chairman Anas Urbaningrum told newsmen while having lunch at a local Warteg here Sunday.

Anas said that it was unfair if these small food vendors had to pay tax as required by the Jakarta administrators. "The low class consumers will suffer from that tax policy’s impact if (owners of) wartegs do pay tax," he said.

The Jakarta provincial government had earlier planned to impose tax on small food vendors but the plan was then canceled due to harsh public criticism and reaction. Anas said the tax revenues need to be increased but they should be carried out selectively by considering the principle of justice.

The tax ratio in Indonesia remained at 16-17 percent. This ratio needs to be pushed up but the small food vendors were not yet subject to the tax, he said. "We need to be selective and fair. We cannot imagine if there is no ’warteg’ in Jakarta," he said.

Anas said he did appreciate Jakarta Governor Fauzi Bowo who had canceled the plan. He added that these small food vendors and other small business actors need to be fostered and supervised.

Source : kompas

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