What Is Carbon Excise? Can Be A Source Of State Revenue Apart From 12 Percent VAT
YOGYAKARTA Excise carbon (CO2) motorized vehicles can be proposed as a choice of state revenue sources rather than increasing the value added tax (VAT) from 11 to 12 percent. So, what is carbon excise?
Quoted from Antara, Executive Director of the Committee for the Elimination of Pambal Gasoline (KPBB) Ahmad Safrudin, explained that carbon excise can be an alternative choice of government income instead of increasing VAT
"This excise potential is IDR 92 trillion per year (netto), much greater than the additional 1 percent of the increase in VAT which is only IDR 67 trillion," said Safrudin, quoted Monday, January 6, 2024.
According to him, the government can earn IDR 92 trillion from the excise carbon of motorized vehicles, as long as the policy is implemented in all sectors of development and industry.
The high potential income that the government can get from this sector makes many people want to know what carbon excise is. If you are one of them, see the review below.
Quoted from the Ministry of Finance Learning Center page, what is meant by excise duty is the type of mandatory levy imposed by the government on individuals or business entities. Excise is generally imposed on various things, such as pribabadi or company revenues, purchases of goods and services, as well as import and export activities.
Some types of general excise include carbon taxes, income tax, value added tax (VAT), cigarette excise, liquor excise, and customs.
Meanwhile, carbon is the emission from burning compounds that contain carbon, such as CO2, LPJ, and other fuels.
From the explanation above, it can be concluded that the levies imposed by the government on any product or item that produces carbon emissions.
The purpose of excise carbon is to change the behavior of business actors towards a green economy by reducing carbon emissions and creating new and renewable energy sources.
According to the Ministry of Finance's financial media page, carbon taxes are imposed on individual taxpayers or bodies that buy goods that contain carbon and/or carry out activities that produce carbon emissions.
In Indonesia, carbon tax rates are contained in Article 13 paragraph (8) and (9) of the Tax Regulation Harmonization Law (UU HPP) where carbon tax rates are set higher or equal to the carbon market price per kilogram of carbon dioxide equivalent (CO2e), and in terms of carbon prices in the carbin market lower than Rp30 per kilogram of carbon dioxide equivalent (CO2e), carbon tax rates are set at the lowest Rp30 per kilogram of carbon dioxide equivalent (CO2e) or equivalent units.
Until now, the discussion of the draft government regulation (RPP) on the carbon tax road map is still being discussed.
The flow of implementing the carbon tax in Indonesia in 2021 has been developed by the carbon trading mechanism and in 2022 to 2024, a tax mechanism is applied which is based on the carbon emission limit for the coal-fired power plant (PLTU) sector.
Currently, there are 146 PLTU participants in the carbon trade in the power generation sub-sector in 2024. Starting this year and beyond, the implementation of a full carbon tax and expansion of the carbon tax sector.
Baca juga:
According to the KPBB, the potential for state revenue from the motor vehicle carbon tax can reach Rp92 trillion per year. This figure is much greater than the potential due to the increase in VAT 12 percent.
That's the information about what carbon excise is. Get news updates of other options only on VOI.ID.