Excise Provisions For Sweetened Drinks: The Following Is An Explanation From The Directorate General Of Customs And Excise

YOGYAKARTA - The Directorate General of Customs and Excise confirmed that there are groups of producers who will not be subject to excise on Packaging Sweetened Drinks (MBDK). One of the producers who are not subject to excise is those who trade in drinks on the side of the road. So, what are the provisions for excise on sweetened drinks?

"We have in the preparation of regulations and how big the impact will be and we are simulating what kind of implementation and what kind of scope it is," said Director of Strategic Revenue and Planning, Directorate General of Customs Muhammad Aflah Farobi in the State Revenue Policy Strategy activity in the 2024 State Budget, in Bogor, West Java, Tuesday (26/9/2023).

He said the Directorate General of Customs and Excise was preparing to carefully implement this provision. For him, if it is not carried out carefully, then this excise tax can actually bring in more negative results than positive ones.

"If we don't prepare the context, when the harm will be more," he said.

Aflah said that one of the main considerations was the presence of people trading sweet drinks on the side of the road. These sellers, he said, often use press machines to pack them at relatively low prices.

"Our consideration is, when it comes to sweet drinks in packaging, the question is whether people who sell drinks in the press or not will they be worn?" he said.

For Aflah, the Directorate General of Customs and Excise concluded that the trade people would not be subject to MBDK excise in the early stages of implementation.

Aflah said the Directorate General of Customs and Excise was preparing more detailed regulations regarding this provision. He promised that his institution would carry out massive socialization to residents when it was about to apply this provision. "Later, before the implementation, we will intensify the socialization," he said.

First, the Directorate General of Customs and Excise reported that the new provisions regarding excise duty on sweetened drinks will not apply this year, but only in 2024.

The target of income for sugary drinks in packaging is estimated to reach IDR 3, 08 trillion. The application of excise duty has been reported into the Macro Economic Policy and the Principles of Fiscal Policy (KEM-PPKF) 2024. The implementation of the excise provisions for this sweet drink is to avoid the negative effects of sugar on the community.

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