The Government And The House Of Representatives Agree That The Excise On Sweetened Drinks Will Be Valid In 2025

MBDK (Unsplash)

JAKARTA - The State Financial Accountability Agency of the House of Representatives (BAKN) and the Government approved a proposal for an excise rate for packaged sugary drinks (MBDK) in 2025 of at least 2.5 percent and will increase gradually to 20 percent.

This is stated in the Conclusion of the DPR's BAKN Working Meeting with the Ministry of Finance regarding Tobacco Product Excise (CHT) during the first session of 2024-2025.

Chairman of the DPR BAKN Wahyu Sanjaya said that the DPR and the government have agreed on a proposed excise tariff for sweetened drinks in packaging or excise on sweet drinks with the proposal that the excise tariff for sweet drinks is at least 2.5 percent next year and will increase gradually.

"BAKN recommends the government to implement MBDK excise of at least 2.5 percent by 2025, and gradually up to 20 percent," Wahyu said in a working meeting between BAKN and the Ministry of Finance, Tuesday, September 10.

Wahyu explained that the application of sweet beverage excise aims to control and reduce the negative impact of very high MBDK consumption.

In addition, BAKN encourages the government to start implementing MBDK excise to reduce these negative impacts and to increase state revenue from excise and reduce dependence on CHT.

Director General of Customs and Excise Askolani conveyed that the final decision regarding the proposed MBDK excise rate will be influenced by various economic conditions next year.

"We'll see that next year, we don't have this yet. It really depends on the conditions next year," he said.

Askolani added that the proposed 2.5 percent excise rate is currently only a recommendation. "That's just a recommendation, but it will depend on the government next year," he explained.

When asked about the factors that were taken into consideration in determining the tariff, Askolani explained that all aspects were included in the consideration and discussion. "All aspects are of course, so it's just input, it's a nature to see the conditions," he concluded.