Economy Still Difficult, Cigarette Manufacturers Urge Excise Policy to be Evaluated

By : Ahmad Fadli And Aldi Firhand. A | Friday, August 31 2018 - 21:16 IWST

Cigarette Excise Illustration (Foto Ist)
Cigarette Excise Illustration (Foto Ist)

INDUSTRY.co.id - Jakarta - The Association of Indonesian Kretek Cigarette Manufacturers (GAPPRI) hopes that the Ministry of Finance will take every policy related to the tobacco industry to pay more attention to various factors including economic conditions that are still difficult and also political temperatures that tend to heat up ahead of the election.

"Our hope is that as entrepreneurs, the Ministry of Finance is in the same mind and understanding that there is no generalization of the types of kretek and white cigarettes. Then we expect the 2019 status quo Excise Policy, in accordance with the 2018 tobacco excise tariff policy," said GAPPRI Chairperson, Ismanu Soemiran, in a statement. written, Thursday (08/30/2018).

PMK No 146/2017 regulates provisions for reducing rates or excise tariff layers. The implementation of tariff increases for industries that produce white cigarettes and clove cigarettes. The method is to calculate the total cumulative production of both, starting in 2019. Equating excise tariffs between SKM and SPM cigarette types in 2020, and eliminating SKT I-B classes.

If the tariff increase and layer simplification is done, he said, there will be a double increase. That is a regular increase in excise rates and an increase in the impact of deletion. The tariff increase scheme through a significant reduction in layers from 2018-2021.

'' Keep in mind the current condition of the tobacco industry is being reduced by a drastic decline in volume. There has been a 1-2 percent decline over the past 4 years. Even up to April 2018, there was a 7 percent decrease in the cigarette industry volume. That is according to Nielsen's research, April 2018, '' he said.

Therefore, he hopes that the Government can review plans to implement excise tax increases and simplify the excise layer which has the potential to cause losses, both for industry and the country itself.

Ismanu Soemiran conveyed the fact that the sales of the Tobacco Products Industry (IHT) which had deposited to the country amounted to almost 70 percent. That is equivalent to approximately Rp 200 trillion. So, actually IHT can be called a BUMN that is managed privately. Ismanu emphasized that the life of the tobacco product industry is dependent on the government as well.

News Comment

Today's Industry

Synopsys Software

Rabu, 13 Januari 2021 - 18:40 WIB

Synopsys Recognised as a Leader in Static Application Security Testing by Independent Research Firm

Synopsys receives highest score among 12 SAST providers in current offering category.

Electro-Balancer (E-Balancer)

Rabu, 13 Januari 2021 - 16:00 WIB

ZASCHE Handling Rolls Out New Range of Electric Balancers

the E-Balancer is a versatile tool suited for a broad range of heavy-duty industrial applications.

Taylor Armerding, Software Security Expert at Synopsys Software Integrity Group (Photo by Linkedin)

Rabu, 13 Januari 2021 - 15:40 WIB

What is the Cost of Poor Software Quality in the U.S.?

And if you doubt its credibility, or that it applies to software, check out the latest report from the Consortium for Information & Software Quality (CISQ), in partnership with Synopsys, “The…

Nivedita Murthy - Senior Security Consultant, at Synopsys Software Integrity Group

Jumat, 08 Januari 2021 - 17:35 WIB

DevSecOps: The good, the bad, and the ugly

DevSecOps is the practice of integrating security into every stage of the DevOps pipeline.

Ilustration Collaborative robots – or cobots (Photo by Robotic Industries Association)

Selasa, 29 Desember 2020 - 16:25 WIB

Universal Robots Reaches Industry Milestone with 50,000 Collaborative Robots Sold

Cobot market pioneer Universal Robots (UR) solidified its frontrunner position today by selling the 50,000th UR cobot, which was purchased by a German manufacturer to enable higher productivity…