Jakarta’s provincial government says it is considering increasing cigarette taxes in an effort to reduce cigarette smoking among Jakartans.
The plan, contained in a draft bylaw, has apparently been put before the Jakarta parliament for discussion and possible ratification.
Jakarta’s vice governor, Basuki T. Purnama, said the “10 percent tax increase on cigarette price” was intended to influence people to no longer buy cigarettes because of their high prices.
Cigarette taxes were supposed to be higher than other taxes so that people would no longer smoke, he said.
According to Basuki, under the new tax regime, in 2014 the Jakarta provincial government would receive IDR400 billion of “regional original revenue” from the 10 percent tax increase on the price of cigarettes.