Indonesia - govt to raise cigarette excise up to 10 percent starting January 2011..

November 29, 2010 - The government has said it had planned to raise a cigarette excise by up to ten percent next year. "The new excise will be imposed by January 2011. The excise adjustment is made based on the inflation rate estimate in 2011," Finance Ministry’s Customs and Excise director general, Thomas Sugijata said on Saturday.

According to Thomas, the government targets to net more than Rp 62.7 trillion (US$ 6.96 billion) from excise in 2011, higher than Rp 60.7 trillion as proposed in the 2011 state budget. [1 USD = 9,012.00 IDR, the symbol for IDR can be written Rp.] "The new cigarette excise will help us raise additional revenue of Rp 2 trillion," he said.

In the past cigarette company workers have staged protests wanting the govt not to raise the tax on cigarettes.

Reference: Govt to raise cigarette excise up to 10 percent, Nani Afrida, The Jakarta Post, 11/28/2010.

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