TEMPO.CO, Jakarta - Indonesian Consumers Foundation (YLKI) executive director Tulus Abadi said the government`s decision to raise the cigarette excise tariff by 10.04 percent was a step backward. According to Tulus, the excise tariff should be imposed progressively.
“In 2016, the cigarette excise tariff hike was 11.19 percent. Every excuse tariff hike should be progressive, so that it would reach a minimum figure, namely 57 percent, as mandated by the law on excise,” he said in a press release on Thursday, October 26.
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Tulus views that the low percentage in cigarette excise hike reflects Finance Minister Sri Mulyani conservatism in making policies related to cigarette excise.
“Why conservative? Because with a higher increase, the government can generate revenue from the excise sector,” he added.
According to the YLKI executive director, a high excise tariff hike can serve as an instrument to control cigarette, since excise is a sin tax.
“Low cigarette excise hike implemented by the Finance Minister will result in high smoking prevalence, because cigarette is still affordable for poor households, children, and teenagers,” Tulus claimed.
HENDARTYO HANGGI
