TEMPO.CO, Jakarta - City watchdog Forum Warga Kota Jakarta (Jakarta Resident Forum) director Azas Tigor Nainggolan criticizes the Finance Minister’s plans to increase excise rates for tobacco in 2017. He said that a 10.54 percent increase is a half-hearted effort since people can still afford it.
Tigor argued that the increase in tobacco excise rate contradicts with the aim of imposing excise itself: to control consumption. “Regular consumers, the majority of whom are poor people who live in cities, can still afford it, even students, many of whom have become cigarettes consumers, can still buy it by ‘ketengan’ [buying one or two cigarettes, instead of buying them in packs] or buy them with money raised together with their friends,” Tigor said in a written statement on Monday, October 3, 2016.
The government plans to increase average tobacco excise rates in 2017 by 10.54 percent. A 13.46 percent increase will apply for machine-made white cigarettes (SMT), whereas the lowest rate of 0 percent will apply for hand-rolled clove flavored cigarettes (SKT). The government has increased excise rate for tobacco by 11.19 percent this year.
According to Tigor, data from Global Youth Tobacco Survey showed that 41 percent of Indonesian boys and 6.4 percent girls ages 13-15 were current cigarette smokers. “The government should stop giving special treatment for tobacco industry, it should also think about the health of its people,” he said.
Therefore, Jakarta Resident Forum has urged the government to increase excise rates for tobacco by over 20 percent or at least to gradually increase cigarette prices to the point where they are unaffordable to poor people. Secondly, to consider excise as a form to control dangerous products.
“[I mean] dangerous products such as cigarettes which is clearly classified as a product which “MEMBUNUHMU” [kills] as stated in its pack, and not only sees excise as source of revenue for the government,” he said.
In addition, the government is asked not to give special treatment for tobacco products. Moreover, he expects the government to revise the Excise Law in relation to tobacco products.
“From a maximum of 57 percent to a minimum of 57 percent or to at least impose the same excise rate as that of alcoholic drinks,” he said.
INGE KLARA
