Govt raises cigarette prices and excise taxes<\/p>\n
JAKARTA (JP): The government will raise the excise taxes on
\ncigarettes by between four and eight percentage points and their
\nminimum retail prices by 10 percent on April 1, Minister of
\nFinance Bambang Sudibyo said on Wednesday.<\/p>\n
"I signed the decree this morning," Bambang told reporters at
\na Cabinet meeting.<\/p>\n
According to the decree, the excise tax on hand-rolled and
\nmachine-rolled clove and nonclove cigarettes will increase by
\nfour percentage points for companies with an annual output above
\nsix billion cigarettes.<\/p>\n
Thus, the excise tax on machine-rolled cigarettes produced by
\nsuch companies rose to 40 percent from 36 percent, while the
\nexcise tax for hand-rolled cigarettes produced by such companies
\nincreased to 20 percent from 16 percent.<\/p>\n
Under the decree, nonclove cigarette makers with an annual
\noutput of above six million cigarettes will have to pay an excise
\ntax of 40 percent, up from 36 percent.<\/p>\n
According to the decree, the excise taxes payable by medium-
\nand small-sized clove and nonclove cigarette makers will increase
\nby eight percentage points.<\/p>\n
Thus, the excise tax for machine-rolled clove cigarettes made
\nby middle-sized companies with an annual output of between 2
\nbillion and 6 billion cigarettes and with a minimum retail price
\nof Rp 250 rupiah (3.2 U.S. cents) per cigarette, was raised to 38
\npercent; and to 36 percent for cigarettes priced between Rp 165
\nand Rp 245 a cigarette.<\/p>\n
The excise tax on machine-rolled clove cigarettes made by
\nsmall-scale companies with an annual output of less than 2
\nbillion cigarettes and a minimum retail price of Rp 250 was
\nraised to 36 percent; to 34 percent for cigarettes priced between
\nRp 165 and Rp 245; and to 28 percent for those priced between Rp
\n120 and Rp 160.<\/p>\n
The excise tax on hand-rolled clove cigarettes made by medium-
\nsized companies and priced at a minimum of Rp 165 per cigarette
\nrose to 18 percent; and to 16 percent for those priced between Rp
\n110 and Rp 160.<\/p>\n
The new decree sets the excise tax for hand-rolled clove
\ncigarettes made by small-scale companies with a minimum price of
\nRp 165 at 16 percent; at 14 percent for cigarettes priced between
\nRp 110 and Rp 160; and at 12 percent for those priced between Rp
\n80 and Rp 105.<\/p>\n
The excise tax for regular (nonclove) cigarettes made by
\nmedium-sized companies with a minimum price of Rp 150 was
\nincreased to 38 percent and to 36 percent for cigarettes priced
\nbetween Rp 100 and Rp 145.<\/p>\n
Under the decree, small scale nonclove cigarette makers with a
\nminimum retail price of Rp 150 per cigarette will pay an excise
\ntax of 36 percent, while those selling their products at between
\nRp 100 and Rp 145 will pay an excise tax of 34 percent.<\/p>\n
The excise tax for small scale nonclove cigarette makers with
\na minimum retail price of between Rp 70 and Rp 95 percent was set
\nat 28 percent.<\/p>\n
Bambang said the government intentionally imposed higher tax
\nincreases on cigarettes produced by small and medium size
\ncompanies than those produced by big companies with the future
\ngoal of "creating uniform excise taxes".<\/p>\n
"Thus, we hope they (the cigarette producers) will get closer
\nto each other in terms of prices," Bambang said.<\/p>\n
Also under the decree, the minimum retail prices for machine-
\nrolled and hand-rolled clove cigarettes were increased by 10
\npercent across the board.<\/p>\n
The decree also requires regular cigarette producers to raise
\ntheir minimum retail price to narrow the price gap between their
\nproducts and clove cigarettes.<\/p>\n
Thus far, the minimum retail prices for regular cigarettes has
\nbeen set at 45 percent of those for clove cigarettes. But, the
\ndecree raised the retail price ratio to 60 percent. (jsk\/prb)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-raises-cigarette-prices-and-excise-taxes-1447893297",
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