Indef Economists Call The Application Of Excise On Sweetened Drinks Need To Pay Attention To These Two Aspects

Researcher from the Center for Trade and Investment Industry Institute for Development of Economics and Finance (Indef) Ahmad Heri Firdaus. (Photo: Theresia Agatha/VOI)

JAKARTA - Researcher from the Center for the Trade and Investment Industry Institute for Development of Economics and Finance (Indef) Ahmad Heri Firdaus said that the application of packaged sweetened beverage excise (MBDK) needs to pay attention to two aspects.

The first aspect, he said, was the purpose of the enforcement of excise itself and the second was that the government could provide justice for all people.

"If for example later this MDBK excise is implemented, the government also needs to budget for how, for example, the socialization of healthy drinks. The point is to increase public awareness of consumer goods, especially for example, drinks like that. So, some are returned," said Heri, written Tuesday, July 9th.

According to him, business actors do not mind that sweetened drinks are subject to taxes, as long as there are benefits.

"So, what the business world wants is not only that we pay excise or taxes to the government, but what is the return to the sector," he continued.

Meanwhile, Heri said that the implementation of this sweetened beverage excise could later cause the government to find it difficult to practice aspects of justice.

The reason is, the application of excise only targets sweetened drinks containing more than 6 grams of sugar per 100 milliliters.

"Then, (the application of MDBK excise) in terms of fairness practice is a bit difficult. If for example, it is said that MDBK has the potential for human health, later some will also say what about the brewed saset drink. That, right, also sweetened, the difference is one in the bottle and the other must be brewed. They (the business world) need justice," he said.

Thus, Heri said, it would be difficult for the government to practice the aspect of justice in question.

"So, if for example they are only charged with bottled bottles, we just need to drink what we buy at minimarkets or supermarkets, right, they can shout, for example, 'This one (sachet drink) won't hit'. So, the government must have an answer there," he said.

Still said Heri, if the imposition of MDBK excise is applied to all types of drinks, it is feared that it will cause a decrease in people's purchasing power.

Because, he continued, drinks that have been considered as daily guides will experience an increase in prices.

"If all are worn, later including those on sachets or on the side of the road, it will also disturb people, say, people's purchasing power. Therefore, right, so it's like a daily drink can be said to be like that and the price goes up. Of course, it will have an impact on decreasing public consumption," explained Heri.

Therefore, continued Heri, the government must be able to first finalize the MDBK excise study while ensuring that the products subject to taxation really have to be controlled by circulation.

"The government must be able to make, first finalize the study that (the application of MDBK excise) is true and it is proven that excise must be subject to excise because it is a product that needs to be controlled in circulation," he added.

Previously, the Minister of Finance (Menkeu) Sri Mulyani Indrawati said that the target for plastic excise duty and packaged sweetened drinks (MBDK) had been set.

However, the implementation of MBDK excise is more complex when compared to plastic excise because its implementation requires cross-ministerial discussion.

"We have conveyed the practice here. We only make a judgment on economic problems, if we are weak we add excise duty and also the urgency of this excise policy for consumption disclosure because it is dangerous for the environment and health. So, we see the timing of economic conditions and targets that have been set in the APBN," Sri Mulyani explained in a meeting with Commission XI DPR, Tuesday, March 19, 2024.

Sri Mulyani assessed that this was because sweetened drinks were included in the Health Law (UU). Thus, the discussion will be carried out jointly across ministries/agencies, both the Ministry of Health and the Ministry of Industry.

"Later there will be discussions between the Ministry of Health and the Ministry of Industry regarding sugar levels, salt levels that are considered healthy versus industry. This is why there have been various reactions because there have been discussions between k/l," he said.