TEMPO.CO, Jakarta - The government has decided to increase the cigarette excise tariff by 10.04 percent, which will be enforced on January 1, 2018, Finance Minister Sri Mulyani Indrawati said Thursday, October 19.
According to Sri Mulyani, the government had taken several factors into considerations before deciding to increase the excise tariff hike. One of them is an aspiration from the public who urged the government to control tobacco consumption. Another factor is the target to boost the state revenue from tobacco excise.
Sri Mulyani added that the government is aiming at reducing illegal cigarette distributions by increasing excise tariff.
Read: Cigarette Excise Hike Next Year Remains Uncertain
“We also need to consider the impact [of the excise tariff hike] on job opportunities, particularly for farmers and cigarette industry labors,” she said.
The former World Bank executive director pointed out that the excise tariff hike is regulated under the Finance Minister’s Regulation. The amount of the excise tariff hike will be adjusted with the classifications of cigarette companies.
“Not all cigarette companies will be imposed with the 10.04-percent tariff hike. Some of them will get higher excise tariffs, while others will have lower tariffs,” Sri Mulyani explained.
The minister revealed that the government would find a solution for farmers affected by the excise tariff hike policy.
Earlier, President Joko Widodo held a limited meeting at the State Palace discussing a draft bill on cigarette excise tariff. Attending the meeting as Sri Mulyani, Coordinating Economic Minister Darmin Nasution, Coordinating Human Development and Culture Minister Puan Maharani, Trade Minister Enggartiasto Lukita and Health Minister Nila Moeloek.
ADITYA BUDIMAN
