Ten items on which Indonesia plans to impose excise tax

The government plans to increase the types of goods on which excise duty is levied, ranging from packaged sugar-sweetened beverages (MBDK) and plastics to ready-to-eat foods. Excise duty on MBDK and plastics had been planned since 2019, but discussions were delayed due to the pandemic. The talk is currently being discussed again with Congress, though it is unclear when it will be implemented. The Director General of Customs has stated that they do not yet know when it will be implemented and will see the discussion later in the 2025 RAPBN and that their position remains open. In addition to these two items, there are several other items that have been proposed for excise duty. The latest is on ready-to-eat processed foods as stipulated in Government Regulation (PP) No. 28 of 2024 on the Regulations for the Implementation of the Health Act No. 17 of 2023. Article 194 of the Act provides that in order to control the consumption of sugar, salt and fat, the central government may impose excise duty on processed foods, including finished foods, which are considered to be in excess of daily consumption requirements.

DJBC's Director of Technology and Facilities also mentioned the types of commodities on which excise tax is planned to be levied, i.e., concert tickets, fast food, paper towels, monosodium glutamate (MSG), rock coals and detergents. However, the Director of Communications and Service User Guidance at DJBC emphasized that all these types of commodities are only suggestions and have not been studied yet. So far, only three types of goods are subject to excise duty - ethanol, ethanol-containing beverages and tobacco products - which means that no new additions have been made to the levy. Here's the full list of goods slated for excise duty: packaged sweetened beverages (MDBK), plastics, processed foods, ready-to-eat foods, concert tickets, detergents, monosodium glutamate (MSG), coal, paper towels, and smartphones (Smartphone).