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Indonesia to keep hiking cigarette excise tax next year

Xinhua, September 30, 2016 Adjust font size:

The Indonesian government will once again increase cigarette excise tax next year in a bid to improve public health and boost revenue.

The government will increase the cigarette tax by an average 10.54 percent for next year, after a 11.3-percent hike for this year, Finance Minister Sri Mulyani Indrawati said Friday.

Smoking can harm health of the people so that consumption of cigarette must be controlled and restricted, said the minister.

"The policy will give positive effect to more than 5.8 million Indonesian people. (Besides), it aims to control production, trade of illegal cigarette and excise revenue."

The impact of smoking has hit Indonesia's young generation as over 54 percent of children in the country have tried smoking, according to Yohana Yambise, minister for women empowerment and child protection.

Cigarette excise taxes contribute 10 to 12 percent to the state budget at present and 11.7 percent for last year, according to government data.

The country's cigarette manufacturers' association has warned that the cigarette industry has witnessed unfavorable market condition after previous hikes on the excise tax. Endit