Cigarette tax set to be implemented by 2014

JAKARTA: The Jakarta administration is planning to implement a cigarette tax by 2014 following a new Regional Tax Law.

Revenues from the tax, which will amount to 10 percent of the excise tariff, are expected to increase the city's regional budget and deter smoking.

"We are preparing a bylaw to support the enactment of the new tax," Reynalda Madjid, head of the city's Tax Service Agency, said, as quoted by beritajakarta.com.

A similar tax will be implemented in other provinces nationwide, as soon as the new law takes effect in 2011.

The law states that 50 percent of the revenue generated by the tax must be allocated to public health and law enforcement programs. - JP