Heaptalk, Jakarta — The Indonesian public is currently abuzz with discussions about the expected increase in childbirth costs due to the imposition of value-added tax (VAT).
In response to this issue, the Ministry of Finance, through Dwi Astuti, the Director of Education, Services, and Public Relations at the Directorate General of Taxes, denied that childbirth costs would be subject to tax.
She explained that the regulations on this matter are outlined in Government Regulation Number 49 of 2022 on Exemptions from Value-Added Tax and Value-Added Tax or Value-Added Tax and Sales Tax on Certain Luxury Goods Not Collected on Imports and/or Delivery of Certain Taxable Goods and/or Delivery of Certain Taxable Services and/or Utilization of Certain Taxable Services from Outside the Customs Area. This regulation was enacted on December 12, 2022.
Article 10 of this Government Regulation stipulates that medical health services, including childbirth or delivery, are exempt from VAT. “Medical health services are considered strategic taxable services,” Dwi stated in a press release on Thursday (June 6).
The VAT exemption applies to deliveries within the customs area and the utilization of services from outside the customs area within the customs area.
