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Indonesia Aims to Generate Rp4tn from Taxing Plastics, Sweetened Drinks

Translator

Ricky Mohammad Nugraha

Editor

Laila Afifa

14 December 2022 18:23 WIB

TEMPO.CO, Jakarta - President Joko “Jokowi” Widodo on November 30th officially ratified Presidential Regulation No.130/2022 which breaks down the 2023 State Budget and also oversees targeted revenues from plastic and packaged sweetened beverages (MBDK) excise. 

The President has set the 2023 tax revenue goal at Rp2,021.2 trillion from more than 30 revenue items, Bisnis.com reported. 

Several taxes that have been applied are tobacco products excise (CHT) with a target of Rp232.58 trillion, ethyl alcohol excise of Rp136.9 billion, and drinks containing ethyl alcohol of Rp8.6 trillion.

The President also specifically tasked state ministries to collect a total excise of Rp4.06 trillion from plastic products and sweetened drinks in 2023. 

The mandate to collect excise duty on plastic and sweetened drinks have actually been listed for several years, as in 2022 the written plastic tax revenue target was set at Rp1.9 trillion and the MBDK tax was at Rp1.5 trillion. However, the tax has never been taken into effect which resulted in zero income generated from these two excise posts. 

BISNIS

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TaxPlasticSweetened Drinktax revenue


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