Indonesia: Cigarette Tax Increase to Be Announced in Early October

• Sep 21, 2017

TEMPO.CO, Jakarta – Heru Pambudi, director general of customs and excise at the Finance Ministry, said that the cigarette excise increase for 2018 will be announced in the next two or three weeks.

“Since the decision is not yet final, I can’t reveal [the amount of the excise increase for next year], Heru said during a talk show held by the Indonesian Chamber of Commerce and Industry [Kadin] at Grand Hyatt Hotel in Jakarta yesterday, Sept. 20.

Earlier, the Finance Ministry announced a plan to increase the cigarette excise rate to 8.9 percent. The announcement sparked various responses from many people. Margianta SJD, spokesperson of the Youth Movement for the Framework Convention on Tobacco Control (FCTC) expressed his support for the government to increase the cigarette excise in 2018.

Margianta argues that the cigarette excise must be increased to protect young generations from cigarette. “The government’s plan to increase the cigarette excise in 2018 must be supported. In addition to boost the state revenue, it will raise cigarette prices,” he said last week.

According to the Youth Movement for the FCTC, the national development is threatened by the fact that young generations are addicted to cigarettes.

Based on the National Economic and Social Survey conducted in 2010, the number of smokers aged 10-14 increased from 3.96 million to 10.869 million. Additionally, the number of young smokers aged 15-19 increased three folds within 5 years.

Source: https://en.tempo.co/read/news/2017/09/21/056911325/Cigarette-Tax-Increase-to-Be-Announced-in-Early-October