Farmers do not Get Impact from Increasing in Tobacco Excise

By : Herry Barus And Aldo Bella Putra | Thursday, October 26 2017 - 20:30 IWST

INDUSTRY.co.id - Jakarta - Chief Executive of the Indonesian Consumers Foundation (YLKI) Tulus Abadi said the farmers will not be affected by the increase in tobacco taxes, let alone the government plans to increase by 2018 only an average of 10.04 percent.

"The enemy of tobacco farmers is actually the cigarette industry behavior that casually determines the quality and price of the tobacco leaves belonging to the farmers," Tulus said through a short message in Jakarta on Thursday (26/10/2017)

Therefore, the appeal of President Joko Widodo for tobacco farmers to plant crops to other plants so as not to be affected by the increase of excise duties that the government is not relevant. Tobacco farmers should be cultivated so as not to continue to be deceived by the tobacco industry.

During this time, the bargaining position of farmers to the price of tobacco leaves is quite weak because the quality and price is determined by the "graders" without a clear measure. The existence of "graders" is more profitable to cigarette industry and harm farmers.

"Moreover, according to Law No. 39 of 2007 on Excise, the excise philosophy is an instrument to control consumption, so the basis of the tax increase plan is only to control consumption," he said.

Tulus himself assessed the 10.04 percent increase in tobacco excise tax is a step backward because the previous year's increase reached 11.19 percent.

"Increase in tobacco taxes should be progressive so that it can reach the number mandated by the Excise Law, which is 57 percent," he said.

The government will raise tobacco taxes an average of 10.04 per cent on January 1, 2018. The decision to raise the tobacco tax is set at an internal meeting led by President Joko Widodo at the Presidential Palace on Thursday (19/10).

According to a World Bank report entitled "Tobacco Tax Reform: Crossroads between Health and Development", the Minister of Finance of a country can save more lives than the Minister of Health by raising cigarette taxes.

News Comment

Today's Industry

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…