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Tobacco excise to rise an average 10.04 percent next year
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Coordinating Economic Minister Darmin Nasution talks at a press conference. (JP/Wienda Parwitasari)
The government has announced it will raise tobacco excise by an average of 10.04 percent next year.
"We have 12 categories of cigarettes, with each category having its own excise increase. The average increase will be 10.4 percent," said Coordinating Economic Minister Darmin Nasution after a limited meeting at the Presidential Palace in Jakarta on Thursday.
Indonesia classifies cigarettes based on production method, nicotine level and whether the tobacco is imported or locally sourced.
Read also: Cigarette production up in spite of lesser firms, workers
Darmin said the average increase next year was lower than the 10.54 percent increase in 2017 as President Joko “Jokowi” Widodo had ordered a crop replacement program for tobacco farmers.
"We need to think about persuading tobacco farmers to move to other productive plants," he said.
