An increase in the cigarette prices would be witnessed at the start of 2020 in Indonesia, as announced by a spokesperson from the finance ministry on Friday. This step will be taken in order to reduce the smoking rate in Indonesia.
Around 70percent adult men smoke in Indonesia. WHO (World Health Organization) says that tobacco kills almost 225,720 people each year and 14.7percent dies due to cardiovascular disease.
The cigarette prices have been surging since 2014 to decrease the smoking rate but that has changed nothing up till now.
But now from 1st January, it is being decided that the minimum price of cigarettes would be increased to an average of 35percent and 23percent increase would be noticed on all the tobacco products, as informed by Nufransa Wira Sakti, the finance ministry spokesperson.
Taxes rates on popular machine –rolled clove cigarettes range from 370 rupiah to 590 rupiah a stick, on the other hand the floor retail prices range from 715 rupiah to 1,120 rupiah a stick.
The filtered cigarettes which are popular among the young ones, their rates range from 335-rupiah-625 rupiah a stick and the floor retail prices are 640-rupiah to 1,130-rupiah a stick.
This tobacco rule has become a controversy in Indonesia. All the big tobacco companies say that the turndown in the sale of tobacco is affecting the living standard of the farmers.
Collection of 172 trillion-rupiah of profits from tobacco excises is what Indonesia aims in 2020 as per the proposal made by the government for the next year’s budget which is awaiting approval from the parliament.