Ministry of Finance Considers Excise Tax on Diapers and Disposable Products

The Ministry of Finance (“Kemenkeu”) through the Directorate-General of Customs and Excise (“DJBC”) is reviewing the potential for state revenue through excise goods from products such as diapers, wet wipes, and disposable eating and drinking utensils. This follows up on the marine debris management program, as established in Regulation of the President No. 83 of 2018 (“Regulation 83/2018”) to reduce plastic waste in the sea by 70% by 2025.

“Currently, discussions on the possibility of imposing excise duties on products such as diapers, wet wipes, and disposable tableware are still in the policy review stage in the formulation of fiscal policy,” said Budi Prasetiyo, Head of the Sub-Directorate of Public Relations and Outreach at DJBC, to Hukumonline.

In principle, excisable goods generally have consumption characteristics that need to be controlled or monitored because they have the potential to cause negative impacts on society or the environment. Some of the excise provisions that have been implemented include Regulation of the Minister of Finance No. 193/PMK.010/2021 on Excise Tariffs for Tobacco Products in the Form of Electric Cigarettes and Other Processed Tobacco Products, as amended several times, most recently by Regulation of the Minister of Finance No. 96 of 2024 (collectively referred to as “Regulation 193/2021”).

“These aspects are still under further discussion and are not yet final,” he added.