Indonesia Expat
Featured News

YLKI: Cigarette Minimum Prices Proposed


Head of the Indonesia Consumers Foundation (YLKI), Tulus Abadi, claims that the government has not been serious in its attempts to control cigarette consumption.

They say their assertion is backed up by the amount of tax and prices charged for tobacco, which have only been raised recently.

The government recently announced that they will raise taxes on cigarettes by 23 per cent, and up the selling price by 35 per cent in 2020. However, there hasn’t been any tariff hikes since 2018-2019.

Tulus considers the tariff hike to be low, as the 23 per cent increase will be applied to all forms of tobacco. Since there are different categories of cigarettes, a 23 per cent tax increase might not be effective for the unpopular brands. Therefore, he claims that it will not make a significant impact.

“If the rate converts to rupiah, the increase in the retail price is only Rp10-35 per cigarette; it is useless. It means cigarette prices are still very affordable for consumers,” Tulus explained.

He further said that if the government wants to control the consumption rate, a minimum price of Rp70,000 per package must be charged. He urges the government to ratify the cigarette tax through Finance Ministerial Regulation (PMK). However, the plan still lacks legal force.

Source: Tempo
Image: Pixabay

See: Cigarette Prices to Increase by over 30 Per Cent in 2020

Related posts

Wonderland Brunch, Only at ALICE – The Langham, Jakarta

Mirella Pandjaitan

How to Become a Registered Immigration Consultant in Indonesia

Indonesia Expat

China Polo Team Jakarta 1st Anniversary Celebration

Indonesia Expat

Police Team Up to Investigate Bizarre Deaths of Japanese Couple in Bali

Indonesia Expat

New Regulations for International Arrivals from Transportation Ministry

Indonesia Expat

Discover the Power of Wind and Solar Energy with Inecosolar

Indonesia Expat