EXCISE DUTY EXTENSION: FIREWORKS

Abstract

Indonesia is referred to as narrowly extreme coverage or a country that has very few excise objects. Until now, excise objects in Indonesia only cover 4 types, namely tobacco products (HT), ethyl alcohol (EA), beverages containing ethyl alcohol (MMEA), and what has recently been designated as excise objects, namely plastic. These four types of excise objects, or what are commonly referred to as Excisable Goods (BKC), are relatively few when compared to other countries. Finland, Japan, India and Thailand even stipulate more than ten Excisable Goods as a source of state revenue. Indonesia is deemed necessary to extend excise duty. One of the goods that has the potential to be subject to excise because of its characteristics is fireworks. Based on data obtained from various sources, fireworks cause negative impacts such as air pollution, sound pollution, water pollution, injuries and even death. Based on this negative impact, fireworks are very likely to be subject to excise. Excise rates that may be imposed for fireworks are a specific rate of IDR 809.64 per kilogram of fireworks or an ad valorem rate of 5% to 80% of the sale value of the fireworks. Potential state revenue generated from the imposition of excise duty on fireworks is a minimum of IDR 78 billion for specific excise rates or IDR 93.83 billion to IDR 1.50 trillion for ad valorem excise rates.