Cigarette excise in Indonesia is currently the lowest in the world, and the price is also the cheapest in the worldJakarta (ANTARA) - The Indonesian Consumers Foundation (YLKI) praised Finance Minister's Decree Number 192/2021 on Excise Tariffs for Tobacco Products, such as Cigarettes, Cigars, Leaf Cigarettes, and Tobacco Slices, as it could protect consumers from addictive substances, including tobacco.
"Why do we welcome this? It is because the cigarette excise tax was imposed to protect consumers and also potential ones from exposure to addictive substances, such as tobacco," YLKI Daily Executive Chairman Tulus Abadi stated when contacted by ANTARA here on Saturday.
With the increase in cigarette prices, Abadi is optimistic that consumers would be able to reduce cigarette consumption.
According to Abadi, the cigarette excise should be increased, as the price of cigarettes in Indonesia is among the cheapest in the world.
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"Cigarette excise in Indonesia is currently the lowest in the world, and the price is also the cheapest in the world," he noted.
Apart from the increase in cigarette excise, the high retail cigarette sales also raise concerns that should be addressed.
Abadi noted that despite the cigarette excise tax being raised, the price of cigarettes per stick was still too low for the lower middle class, youth, and children to buy.
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"Despite a 12-percent increase in cigarette excise, if cigarettes are sold per stick, the average consumer can still buy cigarettes in sticks for less than Rp2,000. Thus, the average consumer can buy cigarettes for Rp1,900 per stick," he remarked.
Hence, the YLKI has urged the government to prohibit the sale of cigarettes in retail.
"Cigarette is a product that is subject to excise duty and is a poisonous or addictive substance. However, these cigarettes are sold in retail like how we buy fried peanut or candy," he pointed out.
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Translator: Katriana
Editor: Fardah Assegaf
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