The Shadows of VAT in the Life of Wives

Everyone always has a competitive spirit in their life, so do women. The quote “beauty is pain” often appears accompanying women’s lives. Many things must be done by women to get the desired standard of beauty.

Starting from a beautiful face, beautiful body, and other beautiful shapes, women try to come to salons, beauty clinics, and also sports venues.

“Beauty is the process when you realize that being beautiful is a process that makes you improve your appearance so that you look beautiful. People who know they are beautiful are truly beautiful,” said Dian Sastro Wardoyo at an event.

One ​​of the places that is used as a reference for the process towards beauty is a beauty clinic that offers various forms of treatment. Starting from facials, giving serum, irradiating, installing braces, placing implants on certain body parts to other minor operations.

Certainly, the costs incurred by these ladies are not small. The more complicated the treatment process and the quality assurance of the results, the greater the costs will be.

For example, one consultation for a person to install braces at Clinic A costs IDR 200 thousand, not including medication and surgery costs. I’ve also seen packages of beauty deals on travel websites up to more than IDR 50 million.

From these costs, we can see that it is definitely the middle and upper class people who take advantage of these services. Can these services be covered by the Social Security Administering Agency (BPJS) which is predicted by the government to help the people? Of course not.

Restrictions regarding health services and diseases that are not covered by BPJS Kesehatan are contained in Presidential Regulation (Perpres) Number 82 of 2018 concerning Health Insurance. Health and disease services that are not guaranteed by BPJS Health include:

Health services that are not in accordance with the provisions of the legislation (including referrals at their own request and other health services that are not in accordance with the laws and regulations);

Health services carried out in health facilities that do not cooperate with BPJS Kesehatan, except in an emergency;

Health services against illness or injury due to work accidents or work relationships that have been guaranteed by the work accident insurance program or are borne by the employer;

Health services guaranteed by the mandatory traffic accident insurance program up to the value covered by the traffic accident insurance program according to the participant’s class rights;

Health services performed abroad;
Health services for aesthetic purposes;
Services to treat infertility or infertility;
Dental leveling or orthodontic services;
Health problems or diseases due to drug or alcohol dependence;

Health disorders due to intentional self-harm or self-harming hobbies;

Complementary, alternative, and traditional medicine that has not been declared effective based on health technology assessment;

Treatments and medical procedures categorized as experiments or experiments;
Contraceptive devices and drugs, cosmetics;
Household health supplies;
Health services due to disasters during emergency response, extraordinary events or outbreaks;

Health services for preventable unexpected events (for example, victims of robbery, brawl, etc.);

Health services organized in the context of social service;

Health services due to criminal acts of persecution, sexual violence, victims of terrorism, and criminal acts of trafficking in persons in accordance with the provisions of the legislation;

Certain health services related to the Ministry of Defense, the Indonesian National Armed Forces (TNI), and the National Police;

Other services not related to the health insurance benefits provided; and Services already covered in other programs.

Imposition of VAT on Health Services

Let’s compare the BPJS limits with the limits in the Value Added Tax provisions.

Based on the Law of the Republic of Indonesia Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods, medical health services are not subject to VAT, consisting of:

general practitioner, specialist, and dentist services;
veterinary services;
services of health professionals such as acupuncturists, dentists, nutritionists, and physiotherapists;
midwifery services and traditional birth attendants;
paramedic and nurse services;
services for hospitals, maternity homes, health clinics, health laboratories, and sanatoriums;
services of psychologists and psychiatrists; and
alternative medicine services, including those performed by psychics.

Seeing the comparison above, we can see that beauty treatments wrapped by health services are exempt from Taxable Services which are subject to VAT. Even though the majority of users of expensive beauty treatments are the upper middle class.

This is what causes injustice in the imposition of VAT because there is a distortion of an economic fact in society with various exceptions and ineffective VAT imposition facilities.

Therefore, a multi-tariff scheme is needed in the imposition of VAT on Taxable Services like this to protect the lower middle class. Namely the imposition of tariffs for these premium health services, although not as high as VAT rates in general.

Through this step, we hope that we can help each other in building this country, especially at this time during the Covid-19 pandemic. By working together from all sides, we can make Indonesia even better.

O Wives. Don’t be afraid to be subject to VAT.

Sumber https://pajak.go.id/id/artikel/bayang-bayang-ppn-dalam-kehidupan-puan

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