Sri Mulyani Plans To Increase Excise Tariffs On Tobacco Products

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JAKARTA - Minister of Finance Sri Mulyani Indrawati plans to increase the excise tariff on tobacco products (CHT) in 2022, which is motivated by health factors to the workforce.

“For CHT there is an increase target. As usual, we will explain the CHT policy once we have formulated some of the CHT rates," he said at a press conference on the Financial Note and the 2022 State Budget Bill, quoted by Antara, Monday, August 16.

On the other hand, Sri Mulyani still has not explained in detail about the plan to increase the CHT tariff considering that the government must first formulate various policies.

Sri Mulyani explained that the plan to increase the CHT rate was based on several factors, first from the health side because it was a measure to control the prevalence of child smokers.

The second is in terms of labor, especially workers who work in the Tobacco Products Industry (IHT) and the third is considering the sustainability of tobacco farmers.

Then the fourth factor is the calculation of the increase in CHT rates on state revenues and the fifth is as an effort to eradicate illegal cigarettes.

Not only that, Sri Mulyani said the government also plans to implement the expansion of excisable goods (BKC) next year while taking into account the recovery and economic situation.

"The expansion of other excise goods has been approved by the DPR, such as plastic, which we will do later. Of course, because we are aware of the occurrence of COVID-19, we will do it in a measured way," he explained.

For information, the government targets excise revenues in 2022 to reach IDR 203.92 trillion or grow 11 percent from the 2021 outlook.