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Sri Mulyani Wants Plastic Bags Tax Set at Rp30,000/kg

19 February 2020 12:59 WIB

TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati proposed the tax on plastic bags at Rp30,000 per kilogram since there was no substantial benefit from the excise imposition set in supermarkets so far. 

“The tax collection is not clear, too,” said Sri during a meeting with the Commission XI of the House of Representatives (DPR) at the Parliament Building, Jakarta, Wednesday, February 19

Up until now, she explained that the duties imposition in markets was only carried out under the regional regulations or Perda in 22 cities. Thus, the minister expected the same tax rate across the country.

With the rate of Rp30,000 per kilogram, the tax on plastic bags will be Rp200 per sheet or Rp450 to Rp500 per sheet after duties.

Meanwhile, the Indonesian Retailers Association (Aprindo) or retailers will set Rp200 to Rp500 per sheet. According to the former managing director of the World Bank, the imposition of the duties will increase the inflation of 0.045 percent.

Sri Mulyani added the duties will be valid for the 75-sized plastic bags commonly used in markets. Nevertheless, there would be an exception for several plastic products, such as non-fabricated ones including those designed for sugar.

The ministry’s Fiscal Policy Agency Head for Customs and Excise unit, Nasrudin Joko Surjono, said that the tax imposition was not aimed at raising the state revenue but financing the plastic waste management.

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