Thursday, 22 October 2020 | 05:20 WIB

In 2018 State Budget Draft, Gov’t Set to Raise Cigarette Excise Tax by 10.04 Percent

Illustration: Clove cigarettes.

JAKARTA, NETRALNEWS.COM - The government has set an excise tax on average of 10.04 percent for tobacco or cigarette in the 2018 State Budget Draft.

Coordinating Minister for Economic Affairs Darmin Nasution explained the determination of the tariff is the average tariff. This means that there is a difference in the rise of excise tariffs between those belonging to hand-rolled clove cigarettes (SKT) and machine-rolled clove cigarettes (SKM).

"The rise is not large, exactly 10.04 percent. There are 12 layers. It is set at 10.04 percent is average. So there are [tariffs] above and below. Different between SKT and SKM," said Darmin after attending the Closed Meeting at the State Palace, Jakarta, Thursday (10/19/2017).

According to him, the rise in cigarette excise tariff is still relatively lower, considering in 2017, the Finance Minister Sri Mulyani raised the average tariff rate by 10.54 percent.

However, the meeting did not discuss imposition of new excise objects.

"It's about people, so it was taken to the meeting to the President. If it's not about the crowd, it's not necessary. But the president wants to think of things far greater than the rise, for example what to do with tobacco plants, like replacing it with other plants," explained Darmin.