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Jakarta, CNBC Indonesia – The government cannot yet confirm the increase in excise taxes on cigarettes, which according to the plan will take effect next year. This caused the share prices of the producing issuers to fall on Tuesday (10/20/2020).
According to Indonesian Stock Exchange (IDX) trading data, PT Gudang Garam Tbk’s (GGRM) share price has fallen 4.29% to a price level of IDR 41,225 / unit.
Likewise, PT HM Sampoerna Tbk (HMSP) shares were down 4.67% at the IDR 1,445 / unit level and PT Wismilak Inti Makmur Tbk (WIIM) shares fell 3.65% to IDR 370 / unit.
Last Monday (10/19/2020), the Director General of Customs and Special Taxes of the Ministry of Finance, Heru Pambudi, revealed that more time is needed to formulate the amount of the increase in the excise tax rates on cigarettes for 2021 Currently, economic conditions and the tobacco industry are under pressure from the corona virus or Covid-19 pandemic.
“This requires caution and extra time, I think. Hopefully it can come out soon and it can be announced soon,” Heru said during a virtual press conference for the September 2020 KiTa State Budget on Monday (10/19/2020) .
Heru explained that there were several considerations on the part of the ministry to request additional time.
First, the development of economic conditions that have not completely returned to normal after the pressure of the corona pandemic, although signs of recovery have begun to appear.
Second, the development of the tobacco industry, both from the demand and production side, and from the workers in this sector. Some considerations must be made because the pandemic has also put pressure on the tobacco industry.
“This industry has employed direct and indirect workers, so this should also get our attention,” he said.
ThirdThe desire of the government is that the imposition of excise taxes can be an instrument to control the consumption of cigarettes in society. Especially young smokers.
“The government is very careful in formulating tariff policies and various other policy instruments related to cigarettes. We still have to coordinate with various interests,” he explained.
[Gambas:Video CNBC](hps / bag)
