Indonesian Tobacco Association Rejects Cigarette Excise Hike

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  • Petugas Dinas Perindustrian dan Perdagangan (Diperindag) Kabupaten Madiun bersama petugas Kantor Pelayanan Bea dan Cukai Tipe B Madiun menggelar razia rokok ilegal. TEMPO/Ishomuddin

    Petugas Dinas Perindustrian dan Perdagangan (Diperindag) Kabupaten Madiun bersama petugas Kantor Pelayanan Bea dan Cukai Tipe B Madiun menggelar razia rokok ilegal. TEMPO/Ishomuddin

    TEMPO.CO, Jakarta - The Indonesia Tobacco Society Association (AMTI) has rebuffed the notion of an increase in cigarette excise in 2016. They claimed that it can eventually lower their profit.

    "This policy will impact producers and their subordinates," said Budidoyo, Chairman of AMTI on Wednesday, September 9.

    AMTI also presented data from Gadjah Mada University that during the past four years, illegal cigarette has grown bigger, reaching 11.7 percent. Budi said that it will cause legal cigarette sale to drop.

    The government targets to earn Rp 148.9 trillion of cigarette excise next year, The number is lesser than that in 2016, which is at Rp 155.5 trillion.

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