Jakarta: Indonesia’s State Finance Accountability Committee (BAKN) of the House of Representatives (DPR) has proposed a new tax on sugary drinks starting in 2025. The plan suggests a 2.5 per cent tax on sugar-sweetened beverages, which would gradually increase to 20 per cent. The aim is to reduce consumption of sugary drinks and to raise government revenue, reports Jakartaglobe. Id.
Wahyu Sanjaya, head of BAKN, explained that the tax is meant to control sugary drink consumption and generate additional income for the government. He pointed out that the tax would also help reduce the country’s reliance on revenue from tobacco taxes. “We recommend the government start with a 2.5 per cent tax in 2025 and gradually raise it to 20 per cent,” Sanjaya said during a meeting at the House of Representatives.
This proposal is part of the 2025 State Budget plan, which is focused on encouraging manufacturers to lower the sugar content in their products.
Askolani, Director General of Customs and Excise at the Ministry of Finance, noted that the tax will only be introduced if the economy is stable in 2025. He also said that the decision would be made by the next administration, and feedback from different groups would be considered before implementing the policy. “It depends on the government next year. This is just a recommendation for now,” he said.
Earlier this year, President Joko Widodo approved new health regulations, which include plans to limit sugar in food and drinks and introduce taxes on sugary beverages.
