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The new era of cigarette excise tariff
The government has decided to impose a 57 percent excise tariff on tobacco liquids used in ecigarettes and vaporizers, which have been quite popular in Indonesia.
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Indonesia is a country with many variants of cigarettes. It has three types of cigarettes: machine-rolled clove cigarettes, hand-rolled clove cigarettes, and white (regular) cigarettes. (Shutterstock/-)
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wice since this republic gained independence has cigarette excise tariff regulation gone to the President’s desk. The first was Government Regulation No. 21/1946 on tobacco excise concerning the cut in the cigarette excise tariff, while the second one came in late 2017 when the administration of President Joko “Jokowi” Widodo increased the cigarette excise by an average of 10.4 percent through Finance Ministerial Regulation No. 146/PMK.011/2017
If something goes to the President’s desk, it must be a major problem that has a huge effect on people.
In fact, the main subject of Finance Ministerial Regulation 146 is not the 10.4 percent rise in the cigarette excise; the most fundamental content of the regulation is the excise tariff roadmap because it also simplifies the multilayers of excise tariffs, which often overlap and are unfair to small producers.
The excise layers are set depending on the production level of the cigarette companies.
Aviliani, a senior economist at research and policy studies institution Indef, strongly supports the regulation.
“It’s a milestone for the new cigarette excise regulation. The government is assuring policy for the tobacco industrial sector until 2021,” she said.
The cigarette excise regulation is a government regulation solution in the excise sector.
