Indonesia plans to raise tobacco excise taxes

The Indonesian government is aiming at a hike on tobacco and cigarette excise taxes, a move aiming at improving health and boost revenue.

President Joko Widodo on Tuesday told a cabinet meeting to raise excise taxes for imported tobacco and cigarette, and set up rules on limitation of smokers to smoke in public area, State Secretary Pramono Anung disclosed.

"The president gave direction to narrow opportunity for smokers to smoke," Pramono said at the State Palace.

"Going forward, there will be limitation on smoking area, the number of public area for smoking will be decreased," he added.

The secretary said the plan is part of the government's efforts to prepare for healthy and competitive young generation.

Indonesian Minister for Women Empowerment and Child Protection Yohana Yambise highlighted the danger of smoking for children in the country, saying that over 54 percent of children in Indonesia have tried smoking.

"It should be not all the people can purchase cigarette. Children must not be allowed to purchase cigarette," Minister Yohana said at the palace.

However, the country's cigarette manufacturers' association (Gappi) has reminded that the country's cigarette industry has witnessed unfavorable market condition after the previous hikes on excise tax on cigarette and tobacco.

Indonesia imposes 11.19 percent excise tax on cigarette, according to the government data. Enditem