"Indonesia is still short of excisable objects. We are considering imposing excise duty on plastic packs, though no tariff has been set," Head of Customs and Excise Section of the Fiscal Policy Board at the Finance Ministry, Nasrudin Joko, said in a seminar here 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, he said.
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, he said.
In addition, the imposition of excise duty on plastic bottles will also help environmental conservation efforts and reduce plastic consumption, he said.
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.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
