Sri Mulyani Proposes to Tax Plastic, Drinks, Vehicle Emissions
Translator
Editor
19 February 2020 14:24 WIB
TEMPO.CO, Jakarta - In a meeting with House of Representatives (DPR) legislators, Finance Minister Sri Mulyani Indrawati proposed new tax and excise schemes overseeing plastic, sweetened beverages, and vehicles that emit carbon dioxide.
As for plastic tax, Sri proposed Rp30,000/kilogram to the DPR’s finance commission. This would be applied for plastic bags with a general thickness of 75 microns, which will effectively tax plastic bags Rp200 each.
Moreover, the state-minister proposed a sweetened beverage tax due to the significant number of diabetics in the country which has contributed to the fiscal deficit experienced by the healthcare and social security agency (BPJS Kesehatan).
Products that would be targeted by this tax include bottled tea, carbonated soft drinks, up to other alternative beverages such as energy drinks and coffee. The tariff she proposed ranges from Rp1,500 - Rp2,500 per liter.
Meanwhile, motorized vehicles that produce CO2 emissions will be targeted by this tax scheme that will improve the already-applied luxury vehicle tax scheme or PPnBM. “It is more appropriate with excise duty,” said Sri Mulyani.
FAJAR PEBRIANTO
