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Jakarta, CNBC Indonesia – The cigarette issuer, PT Gudang Garam Tbk (GGRM), responded to Finance Minister Sri Mulyani’s decision to increase the tax on tobacco (CHT) or tobacco by an average of 12.5% from next year.
Gudang Garam director Istata Taswin Siddahrta said that as an industry player, the company will follow the government’s policy. Although convinced, the government has calculated the impact on the tobacco industry.
“We always support the government’s policies. Light or heavy, with the possible consequences that decision makers should have considered well,” he told CNBC Indonesia on Thursday (10/12/2020).
The State Treasurer has conveyed assurance regarding the increase in excise rates at a press conference today, Thursday, December 10, 2020.
“We will increase the excise tax on cigarettes by 12.5% (on average) in 2021,” said Sri Mulyani.
In response to this news, GGRM’s share price on the Indonesian Stock Exchange (IDX) ‘burned’ up 6.99% to the level of Rs 44,275 per share. In fact, at the beginning of trading, GGRM shares had risen to the level of Rs 48,000 per share.
The cigarette issuer with the largest market capitalization, PT HM Sampoerna Tbk (HMSP), also declined 6.96% to the level of Rs 1,670 per share. Shares of PT Wismilak Inti Makmur Tbk (WIIM) and PT Bentoel International Tbk (RMBA) also fell 2.52% and 2.67%, respectively.
[Gambas:Video CNBC]
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