Overview

Excise duties are government-imposed levies on specific goods and are typically chosen for their potential societal or environmental impacts or to regulate consumption. In Indonesia, said duties are governed under the framework of Law No. 11 of 1995 on Excise, as amended several times, most recently through the issuance of Law No. 7 of 2021 on the Harmonization of Tax Regulations (collectively referred to as “Law 11/1995”). At the time of writing, excise duties in Indonesia are limited to ethanol, alcoholic beverages and tobacco products.[1]