Wednesday, 19 February 2020

Sri Mulyani Says Gov't Set to Impose Tax on Plastic Bag



Laila Afifa

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  • TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati said the government would impose a tax on plastic bags at Rp200 per piece. The tax would be valid for non-recyclable or petroleum-based plastics.

    “The tax is imposed on plastic bags using a petroleum base or those that cannot be recycled. While recyclable and oxo-degradable plastics which are degraded in 2-3 years will be subject to lower tax,” said the minister before the House of Representatives (DPR) Budgetary Commission in the Parliament Complex, Senayan. South Jakarta, Tuesday, July 2.

    Sri explained the tax would be Rp200 per piece or Rp30,000 per kilogram, with an assumption of 150 pieces per kilogram. Thus, the price of a single plastic bag would be Rp450 to Rp500 per piece.

    According to the minister, the tax charge aimed at controlling the public behavior in using damaging goods and the negative externality that would cause harm to the environment.

    “So this product distribution should be supervised because it’s vital both for the public and environment condition. Thus, the imposition of state levies is necessary to realize justice and balance,” said the former managing director of the World Bank.

    Sri Mulyani hoped the tax charging would be a right instrument to control the use of plastic bags. Moreover, 9.85 billion plastic waste were produced in one year by 90,000 existing retail shops.


    Related: Businesses Want 10% VAT on Waste Reviewed