KONTAN.CO.ID - JAKARTA. Indonesia will raise the excise tax on tobacco products by an average of 12.5% in 2021, the country's finance minister said on Thursday, citing a need to balance efforts to control smoking with the need to support an industry that is a major employer. The 2021 increase compares with the 23% average excise tax hike this year and may disappoint health groups pushing for stronger action in a country with one of the highest smoking rates in the world. "We are trying to balance the health aspect with the economic condition generally that is impacted by COVID-19, especially for workers and farmers," Minister Sri Mulyani Indrawati told a virtual news conference. About 70% of adult men use tobacco products in Indonesia, according to the World Health Organization (WHO), one of the highest rates globally, with cigarette prices also among the lowest of any country.
Indonesia to raise 2021 excise tax on tobacco products by 12.5%
KONTAN.CO.ID - JAKARTA. Indonesia will raise the excise tax on tobacco products by an average of 12.5% in 2021, the country's finance minister said on Thursday, citing a need to balance efforts to control smoking with the need to support an industry that is a major employer. The 2021 increase compares with the 23% average excise tax hike this year and may disappoint health groups pushing for stronger action in a country with one of the highest smoking rates in the world. "We are trying to balance the health aspect with the economic condition generally that is impacted by COVID-19, especially for workers and farmers," Minister Sri Mulyani Indrawati told a virtual news conference. About 70% of adult men use tobacco products in Indonesia, according to the World Health Organization (WHO), one of the highest rates globally, with cigarette prices also among the lowest of any country.