Double Cigarette Tax Rises. Cigarette manufacturers objected to tobacco tax rates in 2020. The higher latest tariff is contained in the Ministerial regulation of the Minister of Finance (PMK) No. 152/PMK. 010/2019 on the Second Amendment of PMK No 146/PMK. 010/, on the Tariff of tobacco tax (CHT). As well as, the Joint Chairman of the Indonesian Cigarette Factory (GAPPRI), Henry Najoan, said that object to the fixing of CHT rates of 2020, especially the White Sigaret Machine (SPM) tax rate. In addition to, the excise rate for the white cigarette shall of the machine rises 29.95%.
Furthermore, According to Henry, the last tax rate increase was very high, more than doubling compare to CHT’s increase ever, as well as an indicator of economic calculations of inflation and economic growth. As well as, GAPPRI hopes that this very high CHT increase has no impact on tobacco industry, labor, absorption of raw materials and the rise of illegal cigarettes, said Henry.
Moreover, Henry deliver a cigarette factory that is base in GAPPRI is a law-abiding manufacturer. So even though the CHT policy is very heavy they will remain obedient and run. In addition to, tt is just that GAPPRI expects the government to be more serious and assertive in eradicating illegal cigarettes including illegal cigarettes results from free trade zones (FTZ). GAPPRI ask the government to apply justly to the treatment of electric cigarettes, he said.
Furthermore, the head of the communications and publication of the Directorate General of Customs and Excise (DJBC), Deni Surjantoro, state that the toll step is a government affirmation and has been through the internal discussion of Kemkeu, a team of experts, and industries Smoking rooms. As well as, in the industry, many workers have been consider. Last, in the future, it is expect to press the decline of illegal cigarettes, said Deni.