The government is set to increase the excise rate on cigarettes by 10 per cent next year, reports the Jakarta Post.

Director general of customs and excise, Anwar Suprijadi, said the government would impose higher excise rates for cigarettes and tobacco next year to raise more state revenue as government spending would remain a key driver for the economy. Anwar also said the excise hike would not jeopardize the profits of cigarette companies nor encourage job cuts in the industry as they would experience a better business environment next year.
The government decided to leave unchanged the excise duty for cigarettes and tobacco this year to protect the cigarette industry’s employment rate amid sluggish growth in other labour-intensive sectors. (pi)