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Jakarta Post

Govt may raise cigarette excise by 10%

  • Rendi A. Witular

    The Jakarta Post

Jakarta   /   Fri, June 5 2009   /  10:20 am

As cigarette sales are likely to grow even stronger next year in the wake of a better business environment, the government is set to increase the excise rate on cigarettes  by 10 percent. Director general of customs and excise Anwar Suprijadi told The Jakarta Post Thursday the government would impose higher excise rates for cigarettes and tobacco next year  to raise more state revenue. “There won’t be any rate increase this year as agreed between the industry and the government. That’s why we aim for the 10 percent rise next year,” Anwar said. He said the state budget would need a boost next year as government spending would remain a key  driver for the economy as in the case of this year when exports and private investments slowed. The government has decided to leave unchanged the excise duty for cigarettes and tobacco this year to protect the cigarette...