Increase in Cigarette Tax to Consider

The increase in the cigarette tax should not be counterproductive, should also take into consideration the principles of excise and effective smoking control policies.

It is not like or do not like to smoke, but there must be an effective policy and appropriate control of cigarettes and excise principle, said Director of the Institute for Development of Economics and Finance (INDEF) Sri Hartarti in Jakarta.

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Previously there is research that says the respondent will stop smoking when cigarettes prices reached 50,000.

Director General of Customs and Excise Heru testifying on several occasions expressed cigarette price increase of up to 50,000 high enough.

Finance Minister Sri Mulyani also said the government will make adjustments to the tax policy according Excise Act 2017 and the state budget is still in consultation with various parties.

According Enny, the tobacco industry a strategic industry for Indonesia because the industry is still one of the biggest contributors to state tax revenues.

On the other hand, said Enny, cigarette prices are too high will also affect the purchasing power of people.

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