Govt Wants Rp500bn Plastic Bags Excise Revenue in 2019

TEMPO.CO, Jakarta - The government is targeting to get Rp500 billion in the form of plastic bag excise duty in 2019. The target is the same as this year's, bit lower than 2017's Rp1 trillion.

Susiwijono, secretary general of the Coordinating Ministry of Economic Affairs, said that subjecting plastic bags to excise had been planned since several years back. "The characteristics of plastic bags match the type of goods that can be subject to excise duty, according to the Excise Law," he said here on Tuesday, December 18.

The Excise Law lists characteristics of excisable goods. Among them are goods that require consumption control and distribution supervision, goods that can cause negative impact on the society and environment, and also goods which usages require state levies for justice and balance.

Susiwijono said that plastic bags ticked all the boxes. According to Environment and Forestry Ministrt, the volume of plastic bag waste reaches 9.8 billion every year. The waste is estimated to pollute the environment for more than 400 years.

"Only five percent of those are recycled, while 50 percent takes up landfill. These are characteristics of excisable goods," he said.

Susiwijono stated that subjecting excise duty on plastic bags is a good initiative. However, he reminded that there has to be balance in implementing the policy, so as not to harm industries.

"That's why the 2019 tax excise target is only Rp500 billion out of the total excise revenue target of Rp165.5 trillion," he said.