Indonesia - workers from small cigarette producers protest excise tax increase..

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December 1, 2009 - In a previous report the Indonesian Cigarette Industry Community Forum (Formasi) had pledged to stage a demonstration to protest a government plan to increase excise from cigarette products in 2010, arguing that the move is unjust. (Indonesia - cigarette industry has pledged to stage a demonstration to protest a government plan to increase excise tax.)

TEMPO Interactive, Jakarta: Workers from minor cigarette producers in Malang, East Java have threatened to bring the tax gap case to the State Business Competition Supervisory Commission. In a rally outside the Customs and Excise Office in the city, around 3,000 thousands workers said the tax hike will harm the small cigarette producers. Indonesia-map.

In the new Finance Minister decision No.181/PMK.011/2009 on tax for tobacco products to take effect in January next year, the smaller cigarette producers will have to pay 62 percent of tax, while the major ones will only pay about seven percent. Workers said tax rise between 14,29 persen -48 persen for clove cigarette would threathen small business.

The workers association said to also bring the matter to house commissions overseeing law and labor. The group, Cigarette Industry Society Forum claimed membership of workers in 323 minor cigarette workers in different regencies in East Java like Malang, Kediri, Sidoarjo, Pasuruan, Tulungagung, Blitar, up to Kudus in Central Java. Spokesman for the group, Suhardjo said they are planning to bring the case to the capital next week.

Reference: Workers Threatens to File Cigarette Tax Case With Business Supervisory Commission, BIBIN BINTARIADI,, 11/30/209.

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