Govt to raise tobacco excise

Jakarta (ANTARA News) - The government will raise tobacco excise by a range of 5-7 percent next year, a customs and excise official said.

"The average increase will not reach 10 percent," Director General of Customs and Excise at the Finance Ministry Agung Kuswandono said here on Monday.

The increase will not be higher than 12.2 percent set for this year, he said adding the fiscal policy body (BKF) at the ministry is currently discussing the plan to raise the tobacco excise.

"It seems it would be lower than that of this year but the plan is still being discussed at the BKF," he said.

Asked about the government`s plan to introduce new excise duty on products other than cigarette and alcoholic drink, he said the BKF is considering the imposition of such duty on three types of products.

The three products are soda, monosodium glutamate (MSG) and diamond.

"We have made a general study on the three types of products, including their production quantities, prices and excise," he said.

It is likely one of the three products will soon be subject to excise duty.

The government is also studying a plan to impose excise on diamond by assessing negative and positive value.

"It seems we would have difficulties imposing excise on diamond. The Directorate General of Customs and Excise is of the effort the cost of collecting the excise will not exceed the amount of excise to be collected," he said. (*)