JAKARTA (TheInsiderStories) - Indonesia government set the new tariff of cigarette machine rolled tax zero percent to 13.46 percent and for the cigarette hand rolled zero percent to 10.54 percent starting 2017 from previously around 11.5% in average.
The tax rate is around 10.54 percent in average. The finance ministry also set the retail price lift to 12.26 percent. The new policy has been accommodating through the ministerial decree No. 177/PMK.010/2016 release on Sept. 30.
“The government is aware of the cigarette are commodities that are detrimental to society and should therefore be restricted. On the other hand the government is also the aspect of labor, illegal cigarettes, tobacco farmers’ livelihoods and revenues. Based on this reason, we Decided to raise, “Finance Minister Sri Mulyani Indrawati said in a press conference at the Directorate General for Custom office.
She said, for the healthy reason, in a decade government has reducing the cigarette maker to 754 from previousy 4,669 factories.
In 2017, government targeting to raises Rp149.8 trillion from cigarette excise. The contribution of cigarette excise to the tax revenues of the State Budget for 2016 is about 10.01 percent.
In this year, government targeting to raised earmarking funds Rp17 trillion from cigarette tax from 2015 Rp15.14 trillion.
She added, the cigarette tax increases will have an impact on inflation 0.23 percent.