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Cigarette Excise Rules Turn off the Cigarette Industry Home Based

  • Posted on October 20, 2017 at 10:53 am

JAKARTA – Minister of Finance Regulation Number 78 of 2013 concerning the establishment faction and the rates are the results of Tobacco Excise on 10 July tobacco companies considered burdensome. Because the tobacco companies are also feeling the impact of small scale within the rules and the increasing cost of cigarette production.

Directorate General of Customs and Excise, Ministry of Finance (DJBC) assess FMD number 78 in 2013 to protect the small tobacco companies. Moreover, the said allegations DJBC small cigarette companies berusahaan impoverish themselves the result of PMK.

New Cigarette Warehouse businessman Ali Khoizin says, PMK 78 in 2013 can not protect small tobacco companies. According to Ali, the regulation on a proposal from foreign tobacco companies to dominate the cigarette market in the area.

“Big Tobacco Factory which is mainly owned by foreigners, to win the competition is not only competing in the market but it also regulates foreign manufacturer regulations. Companies that want to grow small trimmed with PMK rule 78, including through terafilisi clause is not rational,” he told reporters in Jakarta, Tuesday (02/07/2013).

Ali explained that the cigarette company in Indonesia, the majority of family-based. For example in one family could have different cigarette factory. In the PMK, each manufacturer has a characteristic, because there is a family relationship and the amount of production to comply with, the provisions of the PMK is melted and imposed high tariffs.

“Logic in the 78 FMD misguided. Malang In one family of six brothers but then there is one other thing as hostile and each has a cigarette factory. Was right blood relations, family relations, but they are hostile, how to put together,” he stated.

In fact, he added, if the cigarette excise specified in the tariff, then certainly a small cigarette industry would collapse.

“Cigarettes will be the same rate we are exposed to. Though there is cultural value of the tobacco industry, the government ignores the values,” he concluded.