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Jakarta, CNBC Indonesia– Cigarette share price managed to run in today’s trade, Thursday (11/19/2020) after Finance Minister Sri Mulyani gave a signal to consider an increase in the cigarette excise tax in 2021. The government appears to be considering many aspects due to the conditions of the Covid-19 pandemic.
According to trade data, of the 5 publicly traded cigarette manufacturers, all were successfully traded in the green zone with the surge led by PT Wismilak Inti Makmur Tbk (WIIM) managing to jump 5.56%.
Meanwhile, for cigarette stocks with the largest market capitalization on the stock exchange, Rp HM Sampoerna Tbk (HMSP) came in second after rising 3.70% to the level of Rp 1,540 / unit.
Another large capitalized cigarette stock in the market, namely PT Gudang Garam Tbk (GGRM), also managed to gain 2.97% at a price level of IDR 44,150 / unit.
Yesterday, Finance Minister Sri Mulyani Indrawatik again questioned the excise tax policy on cigarettes. The minister emphasized that any policy that is taken always considers many things to maintain balance. However, there are always pros and cons.
One of them is related to the tariff on tobacco consumption (CHT) next year, which is still under development. He said that the policy would listen to input from various parties and consider all aspects.
However, there will still be parties that disagree. He said that one form of protest that took place was the demonstration.
“There was a demonstration by the tobacco growers, they came to Monas to meet the President, then there were peasants who also asked not to go up. So imagine that on the one hand the demonstration asked not to go up, on the other hand someone asked to go up very high,” he said. inwebinarvirtual, Wednesday (11/18/2020).
According to him, finding a balance between the two is what the Ministry of Finance is doing. He wants this tariff on cigarette smoking not to harm or benefit a handful of parties.
“We are just trying to balance it out, which means that no one feels like they have gained more. So we will continue to conduct studies,” he explained.
The state treasurer explained that the government made at least five considerations before establishing this excise tax policy on cigarettes. Starting with health, work, tobacco growers, illegal cigarettes, and state revenue.
He hopes that there will not be a significant increase in illegal cigarettes because the increase in tariffs will make the prices of cigarettes in the market even higher.
“There are people who have an incentive to make illegal cigarettes, the higher the price the happier they are to make illegal cigarettes, because the difference between the market price and the illegal ones will be very large,” he said.
So today all these considerations are coming together to achieve a policy that is good for all parties.
“Then we are going to balance between them. Then we will issue them on time and the goal is to be able to achieve the most optimal goals in many objectives, “he said.
CNBC INDONESIA INVESTIGATION TEAM
[Gambas:Video CNBC]
(trp / trp)
