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Govt delays implementation of sugary drinks excise despite public health concerns
The government has once again delayed the implementation of the long-awaited excise tax on sweetened beverages, raising questions over its commitment to improving post-coronavirus pandemic public health.
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Risky?: An image shows a soft drink sitting on a bed of sugar grains in Paris, taken on Nov. 29, 2017. The NutriNet-Sante study found that artificial sweeteners could increase the risk of developing cancer, but experts not involved in the research say it is not enough proof. (AFP/Joel Saget)
T
he government has once again delayed the implementation of the long-awaited excise tax on sweetened beverages, raising questions over its commitment to improving post-coronavirus pandemic public health.
The Finance Ministry and the House of Representatives Budget Committee (Banggar) last year agreed to include taxes on sweetened beverages and plastic products in the 2023 state budget, though Finance Minister Sri Mulyani said implementing the excise fees would largely depend on the pace of recovery in 2023.
But Nirwala Dwi Heryanto, director for communication at the ministry's customs and excise directorate general, said it was unlikely that the plan to tax sugary beverages could be implemented this year as the ministry was still in the process of completing the legal requirements to impose the excise.
"Officials are currently planning to draft a government regulation [PP] as a legal basis to tax sugary drinks while considering the momentum of the country's economic recovery," Nirwala told The Jakarta Post on Friday.
"We are planning to propose the excise tax to the House Commission IX overseeing health in May. If all goes well it may be in effect next year," he added.
The Finance Ministry had been entertaining since 2009 the idea of taxing sugary drinks to diversify revenue sources but progress had been slow, mainly due to resistance from businesses.
In 2020, the ministry again proposed imposing a sugary drink tax with a more detailed scheme, but the proposal was denied by lawmakers due to the economic slump during the COVID-19 pandemic.
