According to the World Health Organization (WHO), the consumption of sugar-sweetened beverages is a major contributing factor to obesity and diabetes.
Due to its adverse health impacts, the WHO encourages countries to control the consumption of sugar-sweetened beverages through tax or excise duty instruments.
"Excise taxes on sugary drinks are a comprehensive action to reduce sugar consumption. Similar to tobacco excise taxes, which help reduce cigarette consumption," stated the WHO in its 2017 report, *Taxes on sugary drinks: Why do It?*
Based on data from the Global Food Research Program, as of early 2022, approximately 55 countries have implemented excise taxes on sugar-sweetened beverages.
In Southeast Asia, this tax has only been implemented by Brunei Darussalam, Thailand, the Philippines, and Malaysia.
Each country has a different tariff structure. However, generally, the highest excise tax rate is imposed by Brunei, at Rp4,500/liter (assuming an exchange rate of Rp15,000/US$).
The excise tax rate on sugar-sweetened beverages in the Philippines ranges from Rp1,800 to Rp3,600/liter, Thailand at Rp2,200/liter, and Malaysia at Rp1,500/liter.
To date, Indonesia has not implemented a similar excise tax. The Directorate General of Customs and Excise has been conducting a study on this matter since last year.
"Law Number 39 of 2007 on Excise Duties states that one of the characteristics of goods subject to excise duty is 'goods that, when consumed excessively, can have a negative impact on consumers'," stated the Directorate General of Customs and Excise in a press release on its official website, Sunday (July 10, 2022).
"Based on this, it is deemed necessary to conduct further studies on Packaged Sugar-Sweetened Beverages (PSB) for the purpose of excise tax extension," it continued.