Govt seeks more income from cigarettes<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
The government wants tobacco companies to increase production
\nto 200 billion cigarettes this year to help it meet its excise
\nrevenue target for 2004.<\/p>\n
"The minister of finance has stated that there will be no
\nincrease in excise rates or the retail price of tobacco this
\nyear. So, we're expecting tobacco companies to raise their
\noutput," Director General of Customs and Excise Eddy Abdurrahman
\nwas quoted by detik.com as saying on Wednesday.<\/p>\n
The government has set a Rp 27.7 trillion (US$3.25 billion)
\nexcise revenue target this year, up from an estimated Rp 26.3
\ntrillion in 2003. In total, the government expects to collect Rp
\n260 trillion in excise and tax revenue this year.<\/p>\n
Eddy added that the decision not to raise excise rates was to
\nenable the cigarette companies to restructure, following the
\nrecent slump in cigarette sales.<\/p>\n
"We hope that the economic condition in 2004 will get better,
\nso it will improve the public's purchasing power, and eventually
\naffect the production itself," he said.<\/p>\n
Sales dropped to 186 billion cigarettes in 2003, from 204
\nbillion in 2002. The suggested production increase would require
\na 9.3 percent rise in sales over 2003.<\/p>\n
The pressure to boost the production of cigarettes has been
\ncriticized by several non-governmental organizations, who fear
\nthat the move will encourage more new smokers.<\/p>\n
Chairman of the Indonesian Health Consumer Empowerment
\nFoundation (YPKKI), Marius Widjajarta, sees the move as
\n"legalizing massive public death".<\/p>\n
"It shows that the government doesn't care about the health of
\nits citizens, but only cares about money. Our leaders must think
\nof the big picture here," he told The Jakarta Post.<\/p>\n
The tobacco industry contributes some 90 percent of the
\ngovernment's excise revenue, with the liquor industry
\ncontributing the remainder.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-seeks-more-income-from-cigarettes-1447893297",
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"sponsor": "Okusi Associates",
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