Indonesia plans to raise the average excise tax for tobacco products by 5 per cent next year in order to increase low tax revenues and limit tobacco consumption.

Agus Suprijanto, head of the fiscal policy office at the finance ministry. announced today that the tax hike will be effective as of 1 January 2011, reports Reuters.
Currently, the excise tax ranges from IDR 65 (EUR 0.005) per stick to a maximum of IDR 320 per stick, depending on the type of cigarette. The government has been raising excise tax for tobacco products annually to discourage smoking in the world's fifth largest tobacco market. (pi)