Regulation Update
Government Considers Imposing Excise Tax on Fast Food

Wednesday, 31 July 2024

Government Considers Imposing Excise Tax on Fast Food

To increase the capacity of national health security, the government issued Government Regulation (PP) Number 28 of 2024 on Health.

One of the provisions in the regulation allows the government to impose excise taxes on foods that contain sugar, salt, and fat exceeding specified maximum limits, included in this category is ready-to-eat processed food.

This is as stated in Article 194 paragraph (4) of Government Regulation Number 28 Year 2024. In this provision, the government affirms the imposition of excise can be made based on statutory regulations.

Read: Released, New Rules for Goods Seized and Controlled by the State Related to Excise Cases

Article 194

(1) In the context of controlling the consumption of sugar, salt, and fat, the Central Government shall determine the maximum limit of sugar, salt, and fat content in processed food, including processed ready-to-eat food.

(2) Determination of the maximum limit of sugar, salt, and fat content as referred to in paragraph (1) shall be coordinated by the minister in charge of coordination, synchronization, and control of ministerial affairs in the administration of government in the field of human development and cultural affairs by involving the relevant ministries and institutions.

(3) Determination of the maximum limit of sugar, salt, and fat content as referred to in paragraph (1) shall be carried out by considering:

a. risk assessment; and/or
b. international standards.

(4) In addition to the determination of the maximum limit of sugar, salt, and fat content as referred to in paragraph (1), the Central Government may stipulate the imposition of excise tax on certain processed foods in accordance with the provisions of laws and regulations.

With this provision, every person who produces, imports, and/or distributes processed food, including ready-to-eat processed food, is obliged to include a nutrition label including the sugar, salt, and fat content.

Failure to include labels or selling processed food with sugar, salt, and fat content above the provisions will be subject to administrative sanctions, in the form of written warnings, administrative fines, temporary suspension of production and distribution, withdrawal of processed food from circulation to revocation of business licenses.

The determination of the maximum limit of sugar, salt, and fat content is under the coordination of the Coordinating Minister for Human Development and Cultural Affairs together with relevant ministries/institutions. 

In general, PP No. 28 of 2024 regulates the implementation of health efforts, management of medical personnel and health workers, health service facilities, pharmaceuticals, medical devices and medical supplies, health information systems, implementation of health technology, prevention of extraordinary occurrences and outbreaks, health funding, community participation, and guidance and supervision. (ASP/KEN)



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