4 Derivative Rules On Carbon Taxes Prepared, Here's the List!

JAKARTA. The government is currently preparing four derivative regulations from Law Number 7 of 2021 on the Harmonized Tax Regulations (HPP) which will regulate the details of the carbon tax.

Citing kontan.co.id, the four regulations consist of the Draft Regulation of the Minister of Finance (RPMK) on Tariffs and tax base for Carbon Taxes, RPMK on Procedures and Mechanisms for Imposing Carbon Taxes, Draft Government Regulations (RPP) on Roadmaps for Carbon Taxes and RPP on Carbon Tax Subject and Allocation.

The four regulations will explain in more detail the carbon-taxing mechanisms, such as the method of collecting, paying and reporting mechanism.

However, it is not clear when the four regulations will be issued. Even so, previously in the HPP Law, the government has confirmed that the implementation of carbon tax will start on 1 April 2022, with the lowest rate of IDR 30 per kilogram of carbon dioxide equivalent (CO2e).

One of the industries that will be affected by the imposition of a carbon tax is coal. This is considered to have an impact on electricity tariffs, one of which uses coal.

However, as quoted from cnbcindonesia.com, the government stressed that the imposition of a carbon tax would not have a significant impact on electricity tariffs.

Because in its application will take into account the people's purchasing power on electricity consumption. In addition, the implementation of a carbon tax in 2022 is still in the energy transition stage to carbon neutral.