Ministry of Finance Amends Excise Refund Regulations

The Government, through the Ministry of Finance (“Kemenkeu”), is currently harmonizing a Draft Regulation of the Minister of Finance on the mechanism for Excise Refunds. This regulation is being prepared to replace the previous provisions that are still dispersed across various regulations in the customs and excise sector, as mandated by Law No. 11 of 1995 on Excise, as amended several times, most recently by Law No. 7 of 2021 (collectively referred to as “Law 11/1995”).

“The provisions being drafted will serve as the legal basis for excise refunds under certain conditions,” said Nirwala Dwi Heryanto, the Director of Communication and Guidance for Customs and Excise Service Users, to Hukumonline.

The substance of the regulation covers various scenarios for excise refunds, including overpayments due to calculation errors, export activities of excisable goods, reprocessing of goods at the factory, destruction of goods, the granting of excise exemption facilities, and the return of excise bands that are damaged or unused.

This more detailed and comprehensive regulation is expected to enhance transparency and accountability in the refund process. “It is currently in the harmonization process with the Ministry of Law,” he added.