Indonesia bets on plastic, sugary drinks to reduce dependence on tobacco excise

Goats rummage through plastic waste on Panggang Island off Jakarta’s coast. The government plans to impose a plastic bag excise to tackle plastic pollution and generate state revenue. - JP

JAKARTA (The Jakarta Post): Levies on plastic products and sweetened beverages, the government hopes, will reduce dependence on the tobacco excise for state revenue as the country looks to restore its finances after the pandemic.

The annual income from the tax on plastic products is estimated at Rp 7.27 trillion (US$509.07 million) and that from sweetened beverages at Rp 6.25 trillion, according to Nirwala Dwi Heryanto, the director of excise and technicalities at the Finance Ministry’s Customs and Excise Directorate General.