The Directorate General of Customs and Excise (DJBC) at the Finance Ministry plans to implement excise taxes on ready-to-eat processed foods such as fast foods and sweet beverages.
According to Government Regulation (PP) No. 28 of 2024 and Law No. 17 of 2023 concerning Health, the central government can impose excise taxes on certain processed foods in accordance with statutory regulations.
Director General of Customs and Excise Askolani said that there are still processes to be completed before implementing these taxes. The DJBC will move forward once the Health Ministry completes its study on the health impacts of fast food.
“It must be thoroughly reviewed first. We have to consider industry conditions, health conditions, and economic conditions. The Health Ministry will review it first. Then it will be submitted to the Finance Ministry for a comprehensive study, so it’s still a long way to go,” explained Askolani at the DJBC Headquarters on Wednesday.
Processed foods refer to foods or beverages resulting from specific processes or methods, with or without additives. Ready-to-eat processed foods are those that have been processed and are ready to be served immediately at or outside the business premises, such as those served in catering services, hotels, restaurants, cafeterias, canteens, street vendors, food stalls, and similar businesses.
Askolani mentioned that the Finance Ministry, through the Fiscal Policy Agency (BKF), will conduct a study related to the implementation and will then coordinate with the Health Ministry. Askolani did not provide a timeline of the implementation.
President Joko “Jokowi” Widodo aims to control the consumption of sugar, salt, and fat. Maximum content limits for sugar, salt, and fat will be determined in processed foods, including fast foods and sweet beverages. This is stipulated in Government Regulation (PP) No. 28/2024, signed on July 26, 2024. The limits will be determined based on risk assessments and/or international standards.
Additionally, the DJBC is considering imposing excise duties on concert tickets, luxury homes, tissue paper, MSG (monosodium glutamate), coal, and detergents.
Source from Globe Jakarta
Original News HERE
