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TAX POLICY: Excise Extensification Threatened by Political Year

The government's plan to implement excise on plastic products and sweetened beverages will face difficulties in proceeding due to the political transition period in 2024.

Dionisio Damara & Tegar Arief Fadly

5 Jun 2023 - 19.37
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TAX POLICY: Excise Extensification Threatened by Political Year

Illustration: Sugary beverages in packaging. The Indonesian government plans to implement excise on plastic and sugary beverages in packaging in 2024./Freepik

Bisnis, JAKARTA — Excise extensification faces a political threat that limits the government's effort to optimize revenue. The 2024’s elections have become crucial in supporting the government's expansion of the list of excisable goods.

Tax observers doubt the government's commitment to executing the extensification of excisable goods due to the tug-of-war of political interests during the political year. The implementation of excise on plastic and packaged sugary beverages has been included in the State Budget for several years.

Fajry Akbar, a tax researcher at the Center for Indonesia Taxation Analysis (CITA), said that the government's plan to implement excise on plastic products and sweetened beverages will face difficulties due to the political transition period in 2024.

"It's quite difficult to implement excise on plastic products and packaged sugary beverages during the upcoming 2024 political year," said Fajry to Bisnis last week.

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