Work stuff : Tobacco industries in Indonesia next year goverment policy

Dear blogger ;

Talking about smoking again.

Next year our government planned to raise the tax for tobacco product about 6 - 7 percent from current tariff. This policy is aimed to increase income from custom tax. Since the tax from tobacco product is still dominating the total tax from custom. Next year the government aim to get approx 50 trillion rupiah from custom taxes. A total of 48 trillion come from tobacco product.

It s easy to see now, that the government is still need a lot of taxes money from tobacco industries.

Although the production will decrease due to high tax rate, but the income still maintain because law enforcements is doing their job. Illegal tobaccos factory will always targeted by police and local government. This kind of factory often didn't pay the taxes at all. And no standard of good production procedure applied.

Some factory also cheated the law by paying the amount lesser than they had to pay. This kind factory also being targeted by the local authority.

The government stated that the plan for next year is to decrease the production but increase the tax. So the income still on track, but hoping that people that buy tobacco product is come from the better economic status and had a higher sense of health.

Indonesia is know the third biggest country which consume tobacco product. With causes by tobacco related illness is nearly death400 thousand people in a year. A surprising fact that poor family using average of 12 % of their daily income for smoking. Sad....

Regards;