Indonesia May Delay Imposing Excise Tax on Plastic, Sweetened Beverages

Indonesia may postpone its plan to impose an excise tax on plastic and sweetened beverages to 2023, according to a finance ministry official.

The finance ministry’s director general of customs and excise, Askolani, said in an online news conference that the ministry will first focus on finishing the implementing regulation.

The Indonesian government has been planning to impose excise taxes on plastic and sweetened beverages to reduce its dependence on state revenue from tobacco alone, as it aims to restore its finances after the pandemic.

Revenue from plastic products is pegged at 7.27 trillion rupiah ($509.07 million) a year and sugary beverages at 6.25 trillion rupiah.

The finance ministry originally planned to begin imposing taxes on various forms of plastic last year but was delayed after it had failed to notify the parliamentary financial commission, as required to implement new taxes.

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