JAKARTA - The tobacco products industry (IHT) is one of the industries that has been hit and is suffering from the COVID-19 outbreak. In fact, IHT is one of the strategic industries that drives the people's economy. Apart from absorbing millions of workers in the cigarette industry, workers also work in the plantation sector and other derivative sectors.
Therefore, according to the Chairman of the Association of Indonesian Cigarette Companies (Gapero) Surabaya, Sulami Bahar, the government should protect IHT by not increasing cigarette excise tax in 2021. If the government does not raise cigarette taxes, it will save hundreds of thousands to millions of workers in the cigarette industry and tobacco plantation sectors.
"Saving the national IHT is part of saving the national economy so that the national economy is not dragged into a recession," said Sulami in a written statement received, Thursday, October 15.
On the other hand, according to him, the government raising cigarette excise will only increase the burden on the national industry. Given that in 2019 the government as stated in PMK (Minister of Finance Regulation) No. 152/2019 has increased the excise and retail selling price of cigarettes by 23 and 35 percent, respectively.
"Our economy is currently experiencing a recession. While in 2021 the new possibilities entered the period of recovery or economic recovery. Moreover plague COVID-19 not yet know when it will end. Therefore, we ask for help from the government, especially the ministry of finance in order not to make regulations that weaken The industry includes the tobacco products industry. Our hope is that in 2021 there will be no increase in excise rates. Or the status quo. There is no policy that raises cigarette excise rates, "said Sulami Bahar.
Meanwhile, the management of the Indonesian Tobacco Farmers Association (APTI) also urged the government not to issue a policy of raising excise rates in 2021. The reason is, every time the government raises cigarette excise rates, it will not only reduce the number of cigarette sales, but also reduce cigarette production itself.
"Every time the government raises the excise tariff, it has another impact on decreasing cigarette production. The decline in cigarette production, has an impact on the decrease in the number of tobacco product purchases by farmers. And this means tobacco farmers suffer more. Therefore, we ask the government, especially Finance Minister Sri Mulyani, not to increase cigarette excise, "said the Chairman of APTI West Nusa Tenggara, Sahmihudin.
Sahmihudin added, every 1 percent increase in excise rates issued by the government, resulted in thousands of workers in the tobacco plantation sector losing working hours or losing their livelihoods.
"'In the current very difficult economic conditions due to the COVID-19 outbreak and the increase in excise rates in 2019, if the government raises the excise tariff again in 2021, it will make the economy even more difficult. The impact is that the tobacco farming community throughout Indonesia is increasingly suffering, "he explained.
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