What You Need to Know about Carbon Tax Enforcement
The government has imposed a Carbon Tax on Indonesia to achieve Indonesia’s target of reducing 29% gas emissions by 2030 on its effort and 41% with international support by 2030. As of April 1, 2022, a carbon tax has been implemented for companies operating in various industries. Why has Indonesia implemented this policy? Let’s get started!
Read More : These 4 Tools are Mandatory for Calibration! Have your tools been calibrated yet?
From 2010 to 2018, Indonesia experienced an increase in the national GHG (Greenhouse Gas) emission trend of around 4.3% per year. This event impacts global warming so that it indirectly causes sea level rise. Currently, sea level rise has reached about 0.8-1.2 cm/year in Indonesia. One of the other risks of increasing GHG emissions is climate change. Climate change that occurs will have an impact on water scarcity, damage to land ecosystems, damage to ocean ecosystems, the decline in health quality to food scarcity.
Many countries have strengthened the climate agenda in various ways to prevent unwanted things from happening. One of them is the implementation of Carbon Pricing, a fixed fee for carbon pollution that aims to encourage polluters to reduce the number of greenhouse gases they emit into the atmosphere. The government has limited the number of emissions business actors may issue. The business actor must pay a carbon tax if it exceeds this limit.
According to the Ministry of Finance of the Republic of Indonesia, the carbon tax is included in a non-trade instrument in which a carbon tax is imposed on carbon content or carbon-emitting activities. This Carbon Tax is part of a comprehensive policy package for climate change mitigation.
This carbon tax implementation aims to change economic actors’ behavior. So, they switch to low-carbon green economic activities, support the reduction of GHG emissions in the medium and long term, and encourage innovation and investment in developing more efficient, low-carbon, and environmentally friendly carbon markets.
The applicable legal basis for the carbon tax has been regulated in Law number 7 of 2021 concerning Harmonization of Tax Regulations Article 13 and Presidential Regulation No. 98 of 2021 on the Implementation of Carbon Economic Value Article 58.
Let’s contribute to the successful implementation of the carbon tax by following government rules. You need to validate and verify GHG so that the tax paid is in accordance with the carbon issued and you do not incur losses. Such verification and validation can be handled by a verified institution such as SUCOFINDO.
Read More : Dear Jamu Fans, Here are Halal and Healthy Herbal Medicines that are Safe to Consume
SUCOFINDO provides verification and validation services for environmental information accommodated in ISO 14065 (Greenhouse Gases – Organizations). Your company can benefit from obtaining the results of a systematic, independent, and documented evaluation of the GHG emission reduction project development plan following the applicable validation criteria and can improve the company’s image and customer trust.
For more information about your certification services, you can read our article here. If you and your company need further information regarding our services, contact and consult about it here.
