JAKARTA. Association of Indonesian Cigarette Producers (GAPPRI) estimates that domestic cigarette production volume will fall if the Indonesian government raises cigarette excise tax by 23% in 2020.
Henry Najoan, Chairperson of GAPPRI, said that with the new policy, the contribution of the tobacco industry to the state revenue could reach Rp 200 trillion. "There has never been an increase in excise tax and retail price (HJE) of this magnitude," Najoan was quoted as saying by Bisnis last weekend (14/9).
In addition to the increase in excise tax, cigarette manufacturers are still facing the challenge of illegal cigarette sales in the domestic market. "It seems that the government does not care about the tobacco industry," Najoan said. "We cannot imagine the difficulties we will face going forward," he added. (KR/AR)