2017, Officially Cigarette Prices Up
2017, Officially Cigarette Prices Up
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JAKARTA - After a mazy and warm conversation, finally Minister of Finance (Finance), Sri Mulyani Indrawati signed the Regulation of the Minister of Finance (PMK) Number 147/PMK.010/2016 concerning Third Amendment to Regulation of the Minister of Finance No.179/PMK.011/2012 Tobacco Excise tariff.
In this policy, in addition to raising cigarette excise tax by an average of 10.54 percent, also regulate retail prices (retail price) applicable cigarettes per January 1, 2017.
With the PMK, the tax rates are set back should not be lower than the applicable tax rates. In addition, the retail price should not be lower than the Retail Price Limits per rod or Gram applicable or written in the legislation.
"Provisions on the Limitation of retail prices per rod or Gram and Tax Rates per rod or Gram as listed in Annex II (domestic products) and Annex III (for tobacco products which are imported), came into force on January 1, 2017," reads Article 2 (2b, c) the PMK in Jakarta, Monday (10/10).
Referring to the PMK, starting January 1, 2017, the retail selling price (retail price) Smoking Clove Cigarettes Machine (SKM) is lowest Rp 655, up from the previous Rp590. While cigarettes White Cigarettes Machine (SPM) least Rp 585, up from Rp 505.
For Clove Cigarettes Hand (SKT) or White Cigarettes Hand (SPT) least Rp 400 and also up from the previous Rp 370. While the Clove Cigarettes hand Filter (SKTF) and White Cigarettes hand Filter least Rp 655 and also up from the previous Rp 590.
The lowest retail price Clove Cigarettes Machine (SKM) imported tobacco products is set at Rp 1,120 and the lowest retail selling price of Rp 1,030 SPM. For the lowest retail selling price SKT or SPT Rp 1,215 and the lowest retail selling price SKTF and SPTF is Rp 1,120.
Considerations government raised cigarette excise tax and retail selling price of cigarettes of tobacco products is to increase the consumption of goods subject to excise control in the form of tobacco products and pay attention to the revenue potential in the field of tobacco excise sustainable.
"This Regulation comes into force on the date of enactment," reads Article II, paragraph 3 PMK No. 147 / PMK.010 / 2016 which was promulgated by the Director General of Legislation Ministry of Justice and Human Rights, Widodo Ekatjahjana on October 4, 2016.
As known, sometimes ago, the discourse of a cigarette price increase to Rp 50,000 per wrap be a warm conversation. This discourse blows from the results of research conducted Head of Economic Research and Health Policy, Faculty of Public Health, University of Indonesia, Hasbullah Thabrany.
Hasbullan calls, the number of smokers will be reduced drastically if the price is doubled or a maximum of Rp 50,000 per bale.
In this policy, in addition to raising cigarette excise tax by an average of 10.54 percent, also regulate retail prices (retail price) applicable cigarettes per January 1, 2017.
With the PMK, the tax rates are set back should not be lower than the applicable tax rates. In addition, the retail price should not be lower than the Retail Price Limits per rod or Gram applicable or written in the legislation.
"Provisions on the Limitation of retail prices per rod or Gram and Tax Rates per rod or Gram as listed in Annex II (domestic products) and Annex III (for tobacco products which are imported), came into force on January 1, 2017," reads Article 2 (2b, c) the PMK in Jakarta, Monday (10/10).
Referring to the PMK, starting January 1, 2017, the retail selling price (retail price) Smoking Clove Cigarettes Machine (SKM) is lowest Rp 655, up from the previous Rp590. While cigarettes White Cigarettes Machine (SPM) least Rp 585, up from Rp 505.
For Clove Cigarettes Hand (SKT) or White Cigarettes Hand (SPT) least Rp 400 and also up from the previous Rp 370. While the Clove Cigarettes hand Filter (SKTF) and White Cigarettes hand Filter least Rp 655 and also up from the previous Rp 590.
The lowest retail price Clove Cigarettes Machine (SKM) imported tobacco products is set at Rp 1,120 and the lowest retail selling price of Rp 1,030 SPM. For the lowest retail selling price SKT or SPT Rp 1,215 and the lowest retail selling price SKTF and SPTF is Rp 1,120.
Considerations government raised cigarette excise tax and retail selling price of cigarettes of tobacco products is to increase the consumption of goods subject to excise control in the form of tobacco products and pay attention to the revenue potential in the field of tobacco excise sustainable.
"This Regulation comes into force on the date of enactment," reads Article II, paragraph 3 PMK No. 147 / PMK.010 / 2016 which was promulgated by the Director General of Legislation Ministry of Justice and Human Rights, Widodo Ekatjahjana on October 4, 2016.
As known, sometimes ago, the discourse of a cigarette price increase to Rp 50,000 per wrap be a warm conversation. This discourse blows from the results of research conducted Head of Economic Research and Health Policy, Faculty of Public Health, University of Indonesia, Hasbullah Thabrany.
Hasbullan calls, the number of smokers will be reduced drastically if the price is doubled or a maximum of Rp 50,000 per bale.
(rnz)
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