Increase of Cigarette Excise Step Backward

By : Herry Barus And Aldo Bella Putra | Friday, October 27 2017 - 20:30 IWST

Ilustrasi cukai rokok (Foto Ist)
Ilustrasi cukai rokok (Foto Ist)

INDUSTRY.co.id - Jakarta- Indonesian Consumers Foundation (YLKI) assessed the Ministry of Finance's decision to increase the cigarette excise by 2017 by 10.04 percent and will be enacted as of January 1, 2018 is considered a step back.

"Yes, in terms of percentage, the increase in excise tax is a step back because in 2016 the increase is 11, 19 percent.It should be every tax increase is progressive, reaching a minimum of 57 percent, as mandated by the Law on Excise," said Chief Executive of YLKI , Tulus Abadi in Jakarta, Friday (27/10/2017)

According to him, the low percentage increase in cigarette excise tax reflects the Minister of Finance is still very conservative in taking a policy related to the increase in cigarette taxes.

Why conservatives, he asserted, should supposedly with higher increases the government could extract revenues from the larger excise sector.

"The Finance Minister should understand this given the deficit of the state budget, due to the target of tax revenues that always sag," he said.

In addition, said Tulus, high tax increase can also be a control instrument of cigarette consumption.

"Because tax is a sin tax, aka tax sin Remember, currently according to data BPJS majority of diseases suffered by patients BPJS is a degenerative disease, one of the trigger is the consumption of cigarettes.So every year BPJS fiansial experienced bleeding. 2016 deficit reached Rp9 trillion and in 2017 is predicted to reach Rp12 trillion," he said.

Listen to the industry On the other hand, Tulus also assesses the low increase of cigarette excise tax by Ministry of Finance will result in higher smoking prevalence, because the price of cigarettes is still very affordable both by poor household and or children and adolescents.

"The 10.04 percent increase in cigarette excise will only affect Rp 30-50 per cigarette increase per cigarettes, which means that the increase is because cigarettes can still be bought in a 'ketengan' way. In this context, the Minister fails to understand excise tax as 'tax sin' , as a cigarette consumption control instrument," he said.

Therefore, he asserted, it is alleged that the Minister of Finance is too dominant to listen to the voice of the cigarette industry, including not independent and not neutral on the intervention by the cigarette industry, while ignoring the aspirations / input from the public that encourage the control of cigarette consumption.

"President Jokowi's appeal for farmers to reduce tobacco cultivation due to the impact of excise increases is also irrelevant.The 10.04 percent increase in excise tax does not have any impact on tobacco farmers The tobacco farmer's fate is precipitated by the cigarette industry's behavior that simply determines the price and quality of the leaves farmers' tobacco," Tulus Abadi said.

News Comment

Today's Industry

Dr Paul Gardner-Stephen, Senior Lecturer, College of Science and Engineering, Flinders University (Photo by ICT Days)

Kamis, 24 September 2020 - 15:15 WIB

NBN Co to Spend $3bn Upgrading Half of FTTN Network to Full Fibre

In particular, the original Fibre-To-The-Premises (FTTP) plan had several key advantages that this announcement is not able to solve.

Rena Chua, Bug Bounty Advisor at HackerOne (Photo by Linkedin)

Kamis, 24 September 2020 - 14:15 WIB

How COVID-19 Is Impacting Security

With this accelerated pace of digital transformation, CISOs had to quickly facilitate new needs — while ensuring the security of existing systems and newly-acquired collaboration tools.

Ilustration Asia-Pacific’s First and Largest Collaborative Robots Virtual Expo (Photo by Universal Robots)

Selasa, 22 September 2020 - 17:00 WIB

Universal Robots Hosts First Virtual Collaborative Robots Exhibition & Conference in Asia-Pacific

Gain actionable insights on flexible and cost-effective automation solutions addressing post-pandemic ROI and safety challenges for small & medium businesses.

Published BSIMM11, The Latest Version of The BSIMM (Photo by EEJournal)

Senin, 21 September 2020 - 18:30 WIB

Synopsys Publishes BSIMM11 Study Highlighting Fundamental Shifts in Software Security

BSIMM11 reflects the software security practices observed across 130 firms from multiple industry verticals including financial services, FinTech, independent software vendors, cloud, health…

New Cloud-Based Technology That Delivers Secure Remote Access (Photo by News Break)

Senin, 21 September 2020 - 17:15 WIB

Check Point Software Technologies Redefines Secure Remote Access for Enterprises

This technology will integrate with Check Point´s Infinity architecture, and become the easiest and most secure solution for enterprises need to enable employees´ secure remote access to any…