Government Outlines Complexity of Sugar-sweetened Beverage Excise Tax Implementation

Wednesday, 20 March 2024

Government Outlines Complexity of Sugar-sweetened Beverage Excise Tax Implementation

JAKARTA. The government revealed the complexity of preparing the Sugar-Sweetened Beverage Excise Tax (MBDK), so the plan has not been implemented until now.

In fact, according to Finance Minister Sri Mulyani, the preparation of MBDK excise is more complex than the plastic excise policy. This is because discussions must be held between Ministries/Institutions (K/L) in advance to determine the technical imposition of excise.

Quoting, the discussion material is quite detailed because it is related to sugar levels, and salt levels that are considered healthy according to the Ministry of Health and Industry. "Indeed, there have been various reactions because of the discussions between K/L," said Sri Mulyani.

In addition, this policy must also go through a consultation meeting with the House of Representatives before being implemented. This is following the policy formulation mechanism stipulated in the Excise Law and the Harmonized Tax Law.

Previously, the government had revealed that the implementation of an excise tax on sugar-sweetened beverages is waiting for the right momentum, depending on Indonesia's economic conditions. If economic growth in 2023 is above 5%, the MBDK tax will be implemented.

For information, in several countries in the ASEAN region, there are already seven countries that impose MBDK excise. Some of them are Laos, Cambodia, Malaysia, Thailand, Brunei Darussalam, the Philippines and Timor Leste.

Implementation in Other Countries

The implementation of MBDK excise in Laos and Cambodia is quite extensive, as it covers carbonated drinks, concentrates, energy drinks, 100% fruit juices, sweetened juices, milk-based drinks, low-calorie sweetened drinks, and unsweetened bottled water.

The amount of MBDK excise tax imposed in Laos is 5%-10% per liter. While Cambodia applies an MBDK rate of 10% per liter.

Then, Brunei only applies MBDK excise on carbonated and energy drinks at a rate of 0.4 BND for sugar limits above 6 grams per 100 ml.

In Malaysia, MBDK excise is imposed on carbonated drinks, concentrates, and energy drinks to milk-based, at a rate of 0.4 MYR per liter for sugar limits above 5 grams per 100 ml. 

Thailand imposes MBDK excise on beverages with sugar limits above 6 grams per 100 ml at a rate of 10-14% + 0.1-5 THB per liter.

The Philippines applies the MBDK excise tax only to carbonated drinks, concentrates, energy drinks, sweetened juices and low-calorie drinks at a rate of 6-12 PHP per liter. Meanwhile, Timor Leste applied the excise tax on MBDK in 2023 at a rate of US$3 per liter. (ASP/KEN)


Global Recognition
Global Recognition | Word Tax     Global Recognition | Word TP
Contact Us

MUC Building
Jl. TB Simatupang 15
Jakarta Selatan 12530

+6221-788-37-111 (Hunting)

+6221-788-37-666 (Fax)

Graha Pena 15th floor
Jl. Ahmad Yani 88
Surabaya 60231

+6231-828-42-56 (Hunting)

+6231-828-38-84 (Fax)


For more updates and information, drop us an email or phone number.

© 2020. PT Multi Utama Consultindo. All Rights Reserved.