Tobacco Tax Increases by 5%-7% in 2013

Senin, 26 November 2012 | 08:49

The government plan to increase tobacco tax rate by 5%-7% in 2013 and to streamline tobacco tax rate structure to 13 layers from 15 layers.Directorate General of Customs and Excise, Ministry of Finance Agung Kuswandono said the finance minister regulation that manage cigarette tax rate is already submitted.

“The increase is around 5%-7%, not 10%,” he said at Ministry of Finance, Monday (11/12/2012).

Plan to raise cigarette tax rate is lower than the increase in 2012 by 16%. Cigarette tax increase lower in 2013 due to the lack of space to raise the rate.

It is because the majority of layers is touching the maximum rate hike cigarette tax which is 57%.

In the 2013 State Budget, the government targeted state revenue from excise tax of IDR92 trillion, which comes from tobacco tax by IDR88.2 trillion, ethyl alcohol excise and alcoholic beverages by IDR3.8 trillion. Target cigarette tax revenue increased to IDR8.4 trillion from last year target by IDR79.8 trillion. (t08/tw)

by Ana Noviani