Taxation bill to reduce carbon emissions, boost green economy: govt

Taxation bill to reduce carbon emissions, boost green economy: govt

A screenshot of Yustinus Prastowo, Special Staff for Strategic Communications to the Finance Minister, speaking at a webinar on 'Road to Ministry of Finance Festival 2021', originating from Jakarta on Friday, (September 17, 2021). (ANTARA/Sanya Dinda/KT)

It is hoped that the carbon tax can be started well and is fully supported by the community.
Jakarta (ANTARA) - The Indonesian Government is encouraging green economy by regulating the collection of carbon taxes in the General Provisions of Taxation Bill (KUP), which has been discussed with the House of Representatives.

Special Staff for Strategic Communications to the Finance Minister Yustinus Prastowo made the remarks at a webinar on 'Road to Ministry of Finance Festival 2021' here on Friday.

"There is a carbon tax basis to reduce emissions, encourage businesses to provide environmentally friendly products and use green fuels," he said.

According to Prastowo, after the start of the COVID-19 pandemic, the government has motivated the implementation of green economy to generate a more sustainable life.

By 2050, the government intends to reduce up to 80 percent of carbon dioxide emissions, which reached 35 billion tons in 2015, he added.

"We know carbon emissions are absolutely considerable; nearly 70 percent of carbon dioxide emissions are the results of fossil-based energy," Prastowo said.

In 2000, carbon dioxide emissions reached 23 billion tons in just one year, he noted. That figure increased by 43 percent to 32 billion tons in 2015, he highlighted.

Therefore, the government plans to conduct carbon tax collection to suppress carbon dioxide emissions in the future, he informed.

Currently, he said, the government and the House of Representatives are still arranging the right scheme.

The carbon tax will be collected when the society's economy has recovered from the impact of the COVID-19 pandemic, Prastowo added.

"It is hoped that the carbon tax can be started well and is fully supported by the community," he said.

"The open deliberation process is a good opportunity for all parties, such as the government, the House of Representatives, business players, environmental activists, and the public to convey views and inputs for a holistic and comprehensive scheme," he remarked. 

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