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Industry Ministry floats incentives to make sweet drinks excise less bitter
The Industry Ministry has proposed giving incentives sweetened beverage producers to counter an excise on their products that may kick in at the start of next year.
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Industry Minister Agus Gumiwang Kartasasmita (The Jakarta Post/Jerry Adiguna)
T
he Industry Ministry has floated the idea of giving incentives to sweetened beverage producers to counter an excise on their products that may kick in at the turn of the year.
Industry Minister Agus Gumiwang Kartasasmita said the proposed measure could prevent an increase in the prices of sweetened beverages.
“I believe there will be consequences, because, according to some explanations, people’s purchasing power is weakening. I think that is happening because of [rising] prices,” Agus said on Thursday, as quoted by CNN Indonesia.
Agus argued that giving the producers incentives could help them keep the prices of their products at the current levels.
However, he refrained from divulging further details on the proposed incentives and said his office was still assessing the plan.
Agus’ statements come after the House of Representatives’ State Finance Accountability Agency (BAKN) suggested on Tuesday that a 2.5 percent excise be implemented starting at the beginning of 2025 and then gradually be raised to 20 percent.
Customs and Excise Director General Askolani said on Tuesday that the government welcomed BAKN’s suggestion but noted that the decision on whether to implement such a tax would be left to the incoming government, according to Kontan.
