Indonesia - House Finance and Banking Commission opposes govt plan to lower cigarette production..

Symbol - House of Representatives..

April 22, 2010 - The House of Representatives’ (DPR) Finance and Banking Commission (Commission XI) has opposed the government’s plan to lower cigarette production to 248.4 billion sticks from 261 billion this year.

The People's Representative Council (Indonesian: Dewan Perwakilan Rakyat, DPR), sometimes referred to as the House of Representatives, is one of two elected national legislative assemblies in Indonesia. Together with the Regional Representatives Council (Dewan Perwakilan Daerah/DPD), a second chamber with limited powers, it makes up a third chamber, the People's Consultative Assembly (Majelis Permusyawaratan Rakyat). (People's Representative Council)

Indonesia - government may raise cigarette tax and cut cigarette output.., April 6, 2010.

Golkar Party lawmaker Nusron Wahid said on the sidelines of a budget revision hearing on Tuesday, April 20th the production cut would cause the state to lose Rp 10 trillion (US$1.1 billion) in potential revenue. “The production should stand at 261 billion as originally planned,” Nusron said.

He suggested that the government stop drafting a regulation on control of tobacco impacts, which would require the government to lower national cigarette production.

Nusron also suggested that the government lower excise tax imposed on clove cigarette products but increase that imposed on unflavored cigarette products. “Consumers of unflavored cigarette usually have a higher income than clove cigarette consumers,” he said

The government has proposed an increase in tax excise for all cigarette products in a bid to boost revenue to Rp 57 trillion (US$6.27 billion) in 2010, up from Rp 54 trillion in 2009.

Reference: House against cigarette production cut, The Jakarta Post, 4/20/2010.

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