EXCISE TAX POLICY DESIGN IN CONTROLLING THE CIRCULATION OF SUGAR-SWEETENED BEVERAGES, TO PROMOTE PUBLIC HEALTH AND REDUCE THE BURDEN ON THE STATE BUDGET

Abstract

The policy of imposing excise tax on Sugar-Sweetened Beverages (SSBs) is a strategic measure to reduce the growing incidence of Non-Communicable Diseases (NCDs) in Indonesia, particularly diabetes and obesity linked to the consumption of sugary drinks. The yearly increase in SSBs consumption harms public health and imposes a significant financial burden on the state, especially through Social Health Security Administering Body (BPJS). Therefore, firm legal intervention is needed to limit consumption and promote a healthier lifestyle. The implementation of SSBs excise taxes should not be viewed merely as a fiscal instrument to boost revenue but also as a means of protecting the public’s right to live healthy and productive. This policy must be understood as part of a broader public health strategy rather than solely an economic measure. Moreover, the policy is expected to encourage industries to reformulate their products into healthier alternatives to avoid excise taxation.