Cigarette Excise Tariff Next Year Up 12.2%

These new provisions to prevent the circulation of illegal cheap cigarette excise FOR

BNC, The government plans to raise the tobacco tax rates in 2012 of 12.2 percent. This is to prevent illegal circulation of excise and cigarette while increasing state revenues.

"The demand for cigarettes is in-elastic to price, tax rates go up production go up," said Acting (Acting) Chief of Fiscal Policy The Ministry of Finance, Bambang Brojonegoro, during a hearing with House Commission XI on the House of Representatives, 12 September 2011.

In 2012 the government expected to raise the excise duty amounting to Rp72, 44 trillion, up 6.4 percent compared to the target year 2011 Budget Amendment. For the love of cigarettes, the government is targeting revenue of Rp69, 04 trillion, while the liquor excise Rp3, 4 trillion.

The government also estimates that tobacco production in the next year will reach 268.4 billion cigarettes per year.

According to Bambang, the government has also taken steps in anticipation of their fraudulent actions of cigarette manufacturers who had been much progress. Cheating is an attempt cigarette manufacturer that uses a small factory to increase production of cigarettes.

Precaution in question is limiting cigarette production from small-scale tobacco producers. If during this, small manufacturers of cigarettes is limited to producing as many as 400 million sticks of cigarettes, then the new policy will only limit the production of 300 million sticks.

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