The Director-General of Customs and Excise (DJBC) is in the process of studying the feasibility of doubling the cost of a pack of cigarettes in Indonesia to Rp. 50,000. Officials must first consider the economic aspects of such a price increase. The Director General DJBC says the Rp. 50,000 per pack price must be looked at not only from the aspect of the impact on the public’s health but also the asundry effects on employment, agriculture and the industrial sector. The director also expressed concern that a price increase that is too significant will foster a “black market” in illegal or smuggled cigarettes. He said he hoped any increase in the cost of cigarettes would be done in an incremental way over time in order to avoid any negative effects on the economy or public order, worrying that a 2.5 times increase in price done all at once is ill-considered. Cigarettes currently cost an average of Rp. 20,000 per pack. Principals in the Indonesian cigarette industry predict havoc will result if the price is increased to Rp. 50,000 per pack. In response, anti-smoking advocates say a rapid increase would reduce smoking by as must at 60% and result in tremendous savings in terms of public health and work force productivity costs. While cigarette taxes will increase in October, the actual amount of that increase has yet to be decided by the government.
0 Response to "New price for Cigarettes"
Posting Komentar