JAKARTA - The rejection of the increase in cigarette excise tariffs raised by members of the Budget Committee from the Gerindra Party Fraction, seems to have made the stock prices of several cigarette issuers recover (rebound) at the end of trading on late Tuesday (3/9). In the previous day, the price of the four cigarette issuers went slump.
Those three stocks that recovered were PT Gudang Garam Tbk (GGRM) up by 1.73% (Rp 67,550), PT HM Sampoerna Tbk (HMSP) up by 1.90% (Rp 2,680), and PT Wismilak Inti Makmur Tbk (WIIM) went up by 2.51% to Rp 204/share. It was only PT Bentoel International Tbk continued its correction since yesterday at a minus 1.20% to Rp 330/share.
The Government and the Budget Committee of the DPR have indeed agreed on the plan to accept Tobacco Products Excise rate (CHT) in 2020 to be 9%.
Although, the agreement on the increase in CHT was agreed to be 9%, but for the increase in cigarette excise rates above 10% was strongly rejected by the DPR RI, as stated by Budget Committee of Gerindra Fraction Bambang Haryo.
"I have conveyed this cigarette excise to the Director General of Customs and Excise, I strongly reject the increase in double digit excise tax rates next year. I request to not increase it," said he, contacted by CNBC Indonesia reporter, on Tuesday (03/09/2019). According to him, there are many ways to boost the acceptance of CHT besides raising the cigarette excise rates. For example, massively eradicating illegal cigarettes and imposing taxes on cigarettes sold online without tax tape. (AM/W)