Agus Yozami, Andin Aditya Rahman
The Soft Drink Industry Association (Asrim) disagreed with the Government’s plan to apply an excise on carbonated drinks because this would not be in accordance with Article 2 of Law No. 39 of 2007 on Amendments to Law No. 11 of 1995 on Excise (Law).
“There should be no excise on carbonated drinks because it is not a type of a product that fulfills an excise criteria,” stated Secretary General of Asrim Suroso Natakusuma, at a press conference in Jakarta, Monday (17/12).
Suroso explained that in order to apply an excise on a product, it must fulfill the criteria of the abovementioned Article 2 of the Law, which states that in order to apply an excise on a product, the product’s consumption and distribution must be supervised and its consumption must also have a negative impact on the general public.
According to Suroso, carbonated drinks do not have a negative impact on health and the environment.
“Carbonated drinks are 85 – 99% water and do not have a negative impact like cigarettes and alcohol, which are examples of products subject to an excise,” he stated.
The Government plans to apply an excise on carbonated products that use additives for the purpose of increasing state income and preventing negative impact that derives from consuming said products.
Acting Head of the Fiscal Policy Office at the Ministry of Finance Bambang Brodjonegoro also stated that the planned excise is based on the Law. He confirmed that the Government took into consideration aspects of the Law, such as controlling general consumption, when planning to impose an excise on the product, Tuesday (11/12).
Bambang asserted that this policy is still in the proposal stage with the House of Representatives (House) and that he proposed five excise rates, ranging from Rp. 1000 to 5000 per liter. It should be noted that income potential for the Government ranges between Rp. 800 billion and 3,95 trillion.
If the proposal is approved by the House, there will be a discussion on drafting a government regulation based on it, Bambang concluded.
(jt)
Agus Yozami, Andin Aditya Rahman
The Soft Drink Industry Association (Asrim) disagreed with the Government’s plan to apply an excise on carbonated drinks because this would not be in accordance with Article 2 of Law No. 39 of 2007 on Amendments to Law No. 11 of 1995 on Excise (Law).
“There should be no excise on carbonated drinks because it is not a type of a product that fulfills an excise criteria,” stated Secretary General of Asrim Suroso Natakusuma, at a press conference in Jakarta, Monday (17/12).
Suroso explained that in order to apply an excise on a product, it must fulfill the criteria of the abovementioned Article 2 of the Law, which states that in order to apply an excise on a product, the product’s consumption and distribution must be supervised and its consumption must also have a negative impact on the general public.
According to Suroso, carbonated drinks do not have a negative impact on health and the environment.
“Carbonated drinks are 85 – 99% water and do not have a negative impact like cigarettes and alcohol, which are examples of products subject to an excise,” he stated.
The Government plans to apply an excise on carbonated products that use additives for the purpose of increasing state income and preventing negative impact that derives from consuming said products.
Acting Head of the Fiscal Policy Office at the Ministry of Finance Bambang Brodjonegoro also stated that the planned excise is based on the Law. He confirmed that the Government took into consideration aspects of the Law, such as controlling general consumption, when planning to impose an excise on the product, Tuesday (11/12).
Bambang asserted that this policy is still in the proposal stage with the House of Representatives (House) and that he proposed five excise rates, ranging from Rp. 1000 to 5000 per liter. It should be noted that income potential for the Government ranges between Rp. 800 billion and 3,95 trillion.
If the proposal is approved by the House, there will be a discussion on drafting a government regulation based on it, Bambang concluded.
(jt)