2011 Cigarette Excise Tax Rates will Rise, many companies will go bankrupt


The government would raise the cigarette excise tax rates are moderate in 2011 to meet the target of state revenue from excise sector which increased.

"There will be adjustments to tariffs, but the adjustment was still in the moderate stage. That is, if raised will not be too significant," said Director General of Customs and Excise, Ministry of Finance, Thomas Sugijata, Gedung Dhanapala Kemenkeu in Jakarta, Wednesday (6 / 10).

Thomas said that, until now there has been no agreement the amount of increase in state revenue target that must be collected lead agency in the State Budget 2011.

"Not yet, not yet (no agreement), but there is increasing especially in customs," said Thomas.

According to him, increase in excise revenue target will be met from the cigarette tax, instead of the excise beverages containing ethyl alcohol or liquor. Alcohol excise duty rates have increased more than 100 percent in 2010, making it impossible to be raised again in 2011.

He mentioned, if the tax increase was approved by Parliament, cigarette excise tax rate increase will come into force since the first semester of 2011.

Revenue from excise tax for 2011 is planned rise Rp1, 4 trillion, or 2.4 percent of Rp59, 3 trillion in 2010 to Rp60, 7 trillion.

As for import duty revenue, up 900 billion, or 5.2 percent compared to revenues in 2010, from Rp17, 1 trillion to Rp18 trillion. Indonesia Today


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