Limited tax increase plea

The Association of Indonesian Light Cigarette Producers (Gaprindo) has said that the excise increase for light – also known as white or non-kretek – cigarettes should not be more than five percent because of an ongoing economic slowdown in the country, according to a story in The Jakarta Post citing a report at kontan.co.id.

“Customs and excise is quite burdensome for industry players,” Gaprindo’s chairman Muhaimin Moefti was quoted as saying.

“This year, it rose by 10 percent, and even last year it rose by 15 percent.”

The association had asked the government to review customs and excise rates every three to five years, instead of every year as was done currently, said Muhaimin.

Separately, the Finance Ministry’s customs and excise director general, Heru Pambudi, said the government was not planning for a tobacco-products revenue increase.

He projected that there would be a decrease in production of two percent this year.

As of April, he added, his directorate had recorded a decrease in customs and excise revenue when compared with the revenue of the same period of last year.