Jakarta: The Government decided to increase cigarette retail prices by 35 percent. It previously decided to increase excise tax on tobacco products by 21 percent.
"We will issue the Finance Minister's Regulation," Finance Minister Sri Mulyani Indrawati said here on Friday, September 13, 2019.
According to the former World Bank managing director, the regulation will be effective on January 1, 2020. This year, the Government will carry out several preparations.
"The policy is based on three factors. First, we want to reduce consumption, Secondly, we want to control the industry. Lastly, it is expected to increase state revenue," the minister explained.
According to a recent research, the number of young smokers has increased to 9.1 percent. In the meantime, the number of female smokers has increased to 4.8 percent.
"So, we need to increase excise tax on tobacco products in order to tackle this trend," she remarked.