Misconception about Value-added Tax (VAT) Exemption Policy on Animal Feed in the Flour Industry: An Issue on Self-sufficiency of Meat after Reformation

Torganda Raymundus, Haula Rosdiana, Murwendah Murwendah


Flour industry and animal feed industry play an important role in supporting government programs to achieve self-sufficiency of meat. The important role of these animal feed producers has triggered the government to stipulate appropriate tax policies to ensure the growth and development of both industries. Through tax policy instruments, the government has provided facilities in the form of Value Added Tax (VAT) exemption for the delivery of animal feed and animal feed ingredients. However, in its implementation, this policy has not been all-inclusive, leading to a cascading effect suffered by the flour industry. It results in an opportunity cost and cost of taxation affecting the productivity of the flour industry as the producer of animal feed. This study applies a qualitative-descriptive method with data collection techniques of in-depth interview and documentation study. This study explains the implications of VAT exemption policy for the flour industry, evaluates VAT exemption policy on animal feed in the perspective of public policy and productivity of animal feed producers, and analyzes political relations and ideas for VAT policy on animal feed in an effort to support national flour industry and animal feed industry


Value Added Tax; Tax Policy; Animal Feed; Flour Industry; Policy Evaluation

Full Text:



APTINDO (2016). Buku Putih APTINDO. Jakarta: APTINDO

Agustinus, L. (2008). Dasar-Dasar Kebijakan Publik. Bandung: Alfabeta.

Anomaly, J. (2017). Ethics, antibiotics, and public policy. Geo. JL & Pub. Pol'y, 15, 999.

Bungin, Burhan. (2002). Analisis Data Penelitian Kualitatif. Jakarta: Rajawali Press.

Chattopadhyay, S., & Das-Gupta, A. (2002). The Compliance Cost of the Personal Income Tax and its Determinants. New Delhi: National Institute of Public Finance and Policy.

Cnossen, S. (1997). Excise systems: A Global Study of the Selective Taxation of Goods and Services. London: The John Hopkins University Press.

Creswell, J. W. (1998). Qualitative Inquiry and Research Design. USA: SAGE Publications, Inc.

Darussalam & Septiardi, D. (2006). Membatasi Kekuasaan untuk Mengenakan Pajak: Suatu Tinjauan Akademis terhadap Kebijakan, Hukum, dan Administrasi Pajak di Indonesia. Jakarta: Grasindo.

Dunn, W. N. (2003). Pengantar Analisis Kebijakan Publik: Second Edition. Yogyakata: Gadjah Mada University Press.

Dye, T. R. (2008). Understanding Public Policy. New Jersey: Pearson Prentice Hall.

Gunadi. (2005). Pokok-pokok Reformasi Kebijakan Perpajakan dalam Mendukung Investasi Dunia Usaha. Jakarta: Berita Pajak.

Inayati, H. R., & Sari, A. F. (2013). Kebijakan Pajak atas Sektor Pendidikan (Evaluasi dan Gagasan Desain Kebijakan Pajak Pasca Pembatalan Undang-Undang Badan Hukum Pendidikan. Jakarta: Penerbit Universitas Indonesia.

Jones, C. O. (2006). An Introduction to the Study of Public Policy. Belmont CA: Wadsworth.

Lykkeskov, A., & Gjerris, M. (2017). The moral justification behind a climate tax on beef in Denmark. Food ethics, 1(2), 181-191.

Mahmudi. (2005). Manajemen Kinerja Sektor Publik. Yogyakarta: UPP AMP YKPN

Mansury, R. (1999). Kebijakan Fiskal. Jakarta: Yayasan Pengembangan dan Penyebaran Pengetahuan Perpajakan.

Mackenzie, S. G., Wallace, M., & Kyriazakis, I. (2017). How effective can environmental taxes be in reducing the environmental impact of pig farming systems?. Agricultural systems, 152, 131-144.

Ndraha, T. (1989). Konsep Administrasi dan Administrasi di Indonesia. Jakarta: Bina Aksara.

Neuman, W. L. (2000). Social Research Methods: Qualitative and Quantitative Approaches. Fourth Edition. USA: Allyn & Bacon,

Nugroho, R. (2011). Public Policy: Dinamika Kebijakan – Analisis Kebijakan Manajemen Kebijakan. Jakarta: PT Elex Media Computindo.

Indonesia, A. P. T. T. (2013). Overview industri tepung terigu nasional indonesia. Asosiasi Produsen Tepung Terigu Indonesia. Jakarta.

PT BI. (2015). Overview PT BI. Jakarta: PT BI.

Rosdiana, H., & Irianto, S. (2011). Panduan Lengkap Tata Cara Perpajakan di Indonesia. Jakarta: Visimedia.

Rosdiana, H., & Irianto S. (2012). Pengantar Ilmu Pajak: Kebijakan dan Implementasi di Indonesia. Jakarta: RajaGrafindo Persada.

Rosdiana, Haula., Edi., Irianto, S., & Putranti, T. M. (2011). Teori Pajak Pertambahan Nilai. Bogor: Ghalia Indonesia.

Rosdiana, H. (2010). How ‘pro corporate cash-flow tax’ design may promote the development of telecommunication industry. Bisnis dan Birokrasi, Jurnal Ilmu Administrasi dan Organisasi 15(3) pp.183-200

Rosdiana, H. (2011). Rekonstruksi Konsepsi Supply-side Tax Policy. Bisnis & Birokrasi Journal, 15(3).

Rosdiana, H. (2011). How ‘Pro Corporate Cash-Flow Tax’Design May Promote The Development Of Telecommunication Industry. Bisnis & Birokrasi Journal, 17(3).

Steinmo, S. (2003). The evolution of policy ideas: tax policy in the 20th century. The British Journal of Politics and International Relations, 5(2), 206-236.

Suparmoko, M. (2003). Keuangan Negara dalam Teori dan Praktik. Fifth Edition. Yogyakarta: BPFE.

Terra, B. (1988). Sales Taxation: The Case of Value Added Taxes in the European Community. Deventer-Boston: Kluwer Law and Taxation Publisher.

Toma, M. (2014). The value added tax: The impact of procedures applyed to agricultural producers (reverse charge, quota reducing and the exemption from vat). In Agrarian Economy and Rural Development-Realities and Perspectives for Romania. 5th Edition of the International Symposium (pp. 36-48). Bucharest: The Research Institute for Agricultural Economy and Rural Development (ICEADR).

Wagner, C., Kawulich, B., & Garner, M. (2012). Doing social research: A global context. UK: McGraw-Hill Higher Education.

William, D. (1996). Value Added Tax, Tax Law Design and Drafting. Washington DC: International Monetary Fund.

DOI: https://doi.org/10.15294/ipsr.v4i1.17161


  • There are currently no refbacks.

Copyright (c) 2019 Politik Indonesia: Indonesian Political Science Review

License URL: https://creativecommons.org/licenses/by-sa/4.0/