Tobacco Excise Increases Up to 10 Percent

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Liputan  6 - Sunday, November 28

                                                 Tobacco Excise Increases Up to 10 Percent



Liputan6.com, Jakarta: The government will raise the cigarette excise tax rates starting Janthe amount varies depending on the type of cigarettes that is between four to 10 percent. "The real increase of four to 10 percent but the average is five to six percent adjusted for estimated inflation rate of 2011," said Director General of Customs and Excise Kemenkeu (Ministry of Finance), Thomas Sugijata in Jakarta, Saturday (27/11).

She said the parliament and the government has set a target of increasing tax revenue in 2011 compared to 2010 so the tax rate increase is one step to secure the increase in the tax revenue targets. "Targeted tax revenue in the Budget (Budget Expenditures Expenditures of State) in 2011 has increased to Rp 2 trillion compared APBNP 2010 so that one does is increase in excise tax rates of five to six percent," he said.

Thomas said the amount of that increase is a moderate number and associations of the tobacco industry also thinks the rise is as something that is "feasible". "The year 2009 cigarette tax rate increased to 33 percent," said Thomas.

The new tariff has been discussed with the association of cigarette manufacturers and several related agencies. In a time until the end of 2010, the Directorate General of Customs and Excise will be to socialize and open the application or the filing of tobacco excise tax from the tobacco industry so that on January 1, 2011 can already attached to the new excise tax.

Target state revenue from excise duty in Budget 2011 set at Rp 62.7 trillion. The target is up from the proposal in the 2011 draft budget Rp 60.71 trillion or target APBNP 2010, only Rp 59.26 trillion. From this year's target, targeted tobacco excise tax amounting to Rp 55.9 trillion or 94 percent of total tax receipts of 2010. (ADO / Ant)