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 government of Indonesia which representative by House’s Commission IX on Finance, national development planning, banking and non-bank financial institutions will propose some amendment to raise the luxury tax by between 10 and 200%, from its current standing of 75% of a luxury item’s worth (www.thejakartapost.com).
Vice chairman of tax, public policy, monetary, excise and customs affairs at the Indonesian Chamber of Commerce and Industry, Hariyanto Sukamdani said that this amendment should be a starting point for lowering the business sector’s costs.
