Indonesia - govenment may raise cigarette excise tax next year..

June 8, 2009 - With cigarette sales up the government may raise the cigarette excise rate by 10%. Director general of customs and excise Anwar Suprijadi told The Jakarta Post Thursday, June 4th the government would impose higher excise rates for cigarettes and tobacco next year (2010) to raise more state revenue. Anwar said: “There won’t be any rate increase this year as agreed between the industry (protect the cigarette industry’s employment rate amid sluggish growth in other labor-intensive sectors) and the government. That’s why we aim for the 10 percent rise next year.”

In 2008 the Indonesia government also was planning to raise cigarette tax by 6 to 7 percent next year (2009) in an effort to increase state revenue and reduce cigarette consumption.

Cigarette companies were more worried about the planned regional taxes as they claimed these additional taxes would be burdensome. Lawmakers are still deliberating the bill on regional tax and tax refunds, which if passed will impose on cigarette companies new regional taxes of between 10 and 25 percent of the product’s selling price.

Indonesia boasts the world’s cheapest cigarette prices, and is targeting to produce at least 245 billion cigarettes this year, up 3.3 percent from 237 billion last year.

Reference: Govt may raise cigarette excise by 10% Rendi A. Witular, The Jakarta Post, 6/5/2009.

Related news briefs: Indonesia - students/activists hold rally to ban cigarettes..; WHO - Indonesia is crying out for your help..; Indonesia - dispute with U.S. over banning the use of clove in cigarettes..; Indonesia 'cash cow' for Philip Morris International..; Tobacco industry has long targeted young people as "replacement smokers"; Indonesia - district court dismisses request to ratify FCTC..; Asean Countries - Tobacco Industry Blocking Global Treaty On Tobacco..; Indonesia - farmers hold rally protest tobacco controls..; Indonesia - tobacco farmers reject Islamic council's edict..; Indonesia - Ulema Council - debate results is split on smoking..; Indonesia - Withdraw Sponsorhip of Another Rock Concert..; Indonesia to increase tax on tobacco products..; Semarang, Indonesia - Cigarette Smoking Areas to be Prepared..; Jakarta, Indonesia - Malls help enforce non-smoking ban..; Indonesia - federal anti-smoking laws in one year - MAYBE..; Indonesia - NGO's (non-government organizations) Demand the Government Ratify WHO's FCTC.; Indonesia to raise cigarette tax by 6 to 7% in 2009..; Surabaya, Indonesia - anti-smoking bylaw 10/2009 - FOR REAL??; Indonesians smoking more than ever before..; Indonesia further rise in the excise tax would hurt the cigarette industry..; Alicia Keys - Jakarta Concert (July 31st) tobacco companies forced to withdraw sponsorship.. and Most Indonesians support moves to ban tobacco advertisements...