Indonesia to hike cigarette excise, cut production
JAKARTA, April 1 (Reuters) - Indonesia plans to raise the cigarette excise tax, a senior industry ministry official said on Thursday, to offset lower production and further discourage smoking in the world's fifth-largest tobacco market. The tobacco industry plays an important role in Southeast Asia's biggest economy, as it provides millions of jobs while excise taxes on cigarettes account for about 10 percent of government revenue.
The big cigarette companies, including PT Hanjaya Mandala Sampoerna have traditionally been regarded by investors as a play on domestic consumption.
Indonesia set a target of 57 trillion rupiah ($6.27 billion) for revenue from cigarette excise in 2010, up from 54 trillion rupiah in 2009, reflecting the increase in excise, said Benny Wahyudi, director general for Agriculture and Chemical Industries at the Industry Ministry.
Please Login to read the full article| < Prev | Next > |
|---|
Discuss this item on the forums. (0 posts)