Cigarette tax to double

Tue, 11/15/2011 - 12:00

The Indonesian Constitutional Court has decided to double cigarette tax to 12.2 percent in 2012, expecting to cash in about Rp 3 trillion worth of cigarette tax next year.

the combination of increases in both tax and tobacco prices, in addition to the adoption of Tobacco Control Act by the U.S., are feared to kill the Indonesian tobaco cigarette industry.

Around 3,000 local tobaco cigarette brands are available throughout the nation, accounted to around 93 percent of the total 260 billion of produced cigarettes in 2010 with US$ 240 million (Rp 2.2 trillion) worth of foreign exchange reserves from national sales.

Since the adoption of Tobacco Control Act in 2010, Indonesia as the sole producer of tobaco cigarettes, has received fairly none from exports to U.S. (eaz)

 

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