Indonesia to increase Tobacco Excise Tax by 8.5% in Y 2013

Indonesia to increase Tobacco Excise Tax by 8.5% in Y 2013

The Indonesian government sets to raise Tobacco tariffs by an average 8.5% next year in efforts to increase state revenue and also discourage people from taking up the health-risking habit, local media reported here Wednesday.

Indonesian Finance Minister Agus Martowardojo quoted by the Jakarta Globe Wednesday as saying that the government expects revenue from tobacco excise will rise to 88.02-T Rupiah, some US$9.17-B, year fro, 9.80-T Rupiah, about US$8.31-B this year.

Indonesia is Southeast Asia's largest economy and one of the world's largest Tobacco markets, with liberal advertising and low taxes.

Due to weak law enforcement, no minimum age has been set for buying cigarettes. Efforts to reduce advertising, promotion and sponsorship of Tobacco products have failed to significantly curb the number of smokers.

About 70% of adult males smoke in Indonesia, which provides jobs to millions of industry workers.

(source: www.livetradingnews.com)

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