Excise tax on tobacco products will rise an average 8.5 per cent next year, the Jakarta Post said in a story citing Finance Minister Agus Martowardojo.
Levies will be collected on a per-cigarette rather than per-pack basis. Excise taxes are levied based on production scale, with bigger producers paying higher duties, the Globe reported. Currently excise tax ranges from 30 to 57 per cent of cigarette pack price.
Indonesia is a major tobacco market, and a low-tax country for tobacco products. The increases are designed both to raise revenue for the government and to discourage smoking, the Globe reported. (pi)
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