Sugar-Sweetened Beverages Tax Delay; Minister Explains

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati spoke about the excise on sugar-sweetened beverages which have yet to be implemented despite numerous discussions between the government and House of Representatives (DPR).

One of the points discussed by the DPR and the government, said Sri, was that excise would be a tool to help control the consumption of unhealthy goods, such as cigarettes and sweeteners, as well as plastic. The excise was initially designed to be implemented in 2023 but is yet to be introduced.

“We will discuss its implementation aspect with the House under the state budget draft [RAPBN] of 2024, which is currently discussed,” said the Minister in a press conference on May 19.

This uncertainty initially sparked a reaction from Commission XI House member Muhammad Misbakhun who suspects that there are lobbying attempts from the private sector upon influencing the Taxes and Excise Directorate General. His suspicion is also driven by the fact that legislators have passed the regulation since 2018.

“So, what lobbying group from producers of packaged sweetened beverages is negotiating with the government?” he asked in a hearing session at the DPR headquarters on February 14, 2023. 

He further argued that the postponement of the regulation’s introduction will only cause the country to endure losses in terms of missed income sources. Misbakhun went as far as to urge the Corruption Eradication Commission (KPK), Supreme Audit Agency (BPK), and Attorney General’s Office to investigate possible lobbying done by the private sector. 

However, the director general of taxes and excise Askolani denied that lobby attempts are taking place. 

RIRI RAHAYU | RIANI SANUSI PUTRI

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