Indonesia to Raise Cigarette Excise Tax

In Indonesia, the increase in excise rates will also apply to electronic cigarettes by an average rate of 15 percent.

In an attempt to reduce smoking among youngsters and increase awareness about the dangers, the Indonesia government has decided to increase cigarette excise tax.

"Cigarettes are the second highest consumption by urban poor households at 12.21 percent and rural at 11.63 percent, also one of the causes of stunting and death," said Minister Mulyani.

Raising Taxes on Tobacco

In its National Medium-Term Development Plan for the 2020-2024 period, Indonesia targets to reduce the prevalence of smokers in youth aged 10 to 18 years from 9.1 percent to 8.7 in 2024.

Health Hazards of Smoking Cigarettes
Smoking causes many diseases and affects the overall health of smokers.

Nicotine and carbon monoxide in each cigarette temporarily increases smoker’s heart rate and blood pressure, thereby straining the heart and blood vessels.

This predisposes one to the risk of heart attacks and stroke. Blood flow is slowed down, cutting off oxygen supply to the feet and hands, making one vulnerable to the risk of thrombophlebitis. If this remains untreated, many smokers end up with their limbs amputated

Source-IANS

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TOP INSIGHT

The meeting on tobacco excise policy led by President Joko Widodo at the Bogor Presidential Palace said the government would increase the excise rate for machine-made clove cigarettes from 11.50 to 11.75 percent, white cigarettes from 11.00 to 12.00 percent, and hand-rolled cigarettes at an average 5 percent.