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In 2009, cigarette tax will be rising 7 percent. The government plans to increase the tobacco tax by roughly 7 percent in 2009 to curb the growing rate of consumption at 5 percent.

For the next year (2009), hopely the government who representative by the ministry’s head of fiscal policy, Anggito Abimanyu said that it will receive around Rp. 48.2 trillion from tobacco tax revenue.

The 2008 Tobacco Tax regulation is the first step in a scheme to simplify the tax schedule so it will eventually only differentiate between machine-produced and handmade cigarettes.

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