Comments: No luxury tax, but prices jump

The government will revoke the luxury tax on alcoholic beverages from April 1, but don't be fooled; a new regulation will see prices soar, say industry experts.

The government's announcement Tuesday to slap a 200 percent increase in excise tariffs, also beginning next month, will instead raise the price of liquor by up to 40 percent from current levels, said an executive of the Association of Indonesian Alcoholic Beverage Producers (GIMMI).

"The high excise tariffs will result in an increase in prices by at least 40 percent, despite the removal of the luxury tax," said Ipung Nimpuno, the spokesman for the GIMMI.

Your comments:

This is good news for liquor smugglers and bad news for those who will be killed or injured by poisonous illegal distillation plants.

It is another nail in the coffin of our tourism industry and yet another poke in the eye for those religious minorities in the country for whom an occasional alcoholic drink is a relaxing social activity.

Meanwhile, cigarettes remain among the cheapest in the world and the urban elite are free to fill up their gas-guzzling SUVs with subsidized gasoline. Welcome to the republic of dreamland.

David
Jakarta

How will the hotel industry cope with this increase; and what about the tourism industry? I guess we are shooting ourselves in the foot again!

Henry Manoe
Kupang, East Nusa Tenggara