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Govt Mulls Imposing Excise Duty on Plastic Packs

Wednesday, 13 April 2016

Govt Mulls Imposing Excise Duty on Plastic Packs

TEMPO.CO, Jakarta - The Finance Ministry is considering to impose excise duty on plastic packs as part of its efforts to expand the number of objects on which excise is levied.

"Indonesia is still short of excisable objects. We are considering imposing excise duty on plastic packs, though no tariff has been set," said Head of Customs and Excise Section of the Fiscal Policy Board at the Finance Ministry, Nasrudin Joko, in a seminar on Tuesday.

He said the Finance Ministry and the House of Representatives (DPR) are encouraging efforts to expand taxes on several goods which meet the criteria of goods on which such a levy can be imposed.

Indonesia is among those countries which impose a lower excise duty on goods and still rely on tobacco excise revenues, he said.

Other ASEAN member countries, including Thailand, have imposed excise duty on several commodities and services, such as alcoholic and non-alcoholic drinks, gasoline, motor vehicles, discotheques and night clubs.

Therefore, the imposition of excise duty on plastic packs, including plastic bottles, can increase excise receipts from commodities other than tobacco, alcohol ethyl, alcoholic drinks and liquor.

In addition, the imposition of excise duty on plastic bottles will also help environmental conservation efforts and reduce plastic consumption.

Plastic consumption in Indonesia reached some 3 million tons in 2015. With 7 percent annual growth, plastic consumption is expected to increase to 3.2 million tons this year. 

http://en.tempo.co/read/news/2016/04/13/056762173/Govt-Mulls-Imposing-Excise-Duty-on-Plastic-Packs

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