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Sri Mulyani Officially Increases Excise on Alcohol in 2019

17 December 2018 07:57 WIB

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani has signed a new policy in light of excise tax on alcoholic beverages in 2019. The tariff adjustment is valid to drinks containing ethyl alcohol (MMEA) and concentrates containing ethyl alcohol (KMEA).

Head of the Communication and Information Services Bureau of the Finance Ministry, Nufransa Wira Sakti, explained the tariff of MMEA group A with the alcohol content of up to 5 percent, which was previously set at Rp11,000 per liter, will increase to Rp15,000 per liter of both domestic and imported products.

"Adjustments to excise tax are carried out with considerations on the inflation rates in the past four years," said Nufransa as stated in a written statement Tempo received on Sunday, December 16.

The rule is noted in the Finance Minister Regulation or PMK No. 158/PMK.010/2018 concerning the Tariff for Excise Ethyl Alcohol, Drinks Containing Ethyl Alcohol, and Concentrates Containing Ethyl Alcohol. The regulation will take effect on January 1, 2019, as a replacement of PMK No. 62/PMK.011/2010.

Nufransa continued, the import duty of MMEA group B with the alcohol content of 5-20 percent and MMEA group C with the alcohol content of more than 20 percent are raised to 90 percent and 150 percent respectively.

Nufransa mentioned that non-fiscal policy that was stern action against illegal MMEA had succeeded to increase the volume of imported MMEA class B and C.

Meanwhile, tariff adjustments for the KMEA will follow the international best practices from Rp100,000 per liter to be Rp1,000 per gram.



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