Indonesian’s Ministry of Finance Sets the Tax Policy for 2012

The government sets the tax policy for 2012, including the average increase tax rates about 16.3% or an increase of IDR 10 to IDR 70 per cigarette starting January 1, 2012.

Head of Communications and Information Services in Ministry of Finance, Yudi Pramadi, in his statement in Jakarta, Friday (2 / 12), said Minister of Finance has set the Minister of Finance Regulation (PMK) No. 167/PMK.011/2011 dated 9 November 2011 on the third amendment of PMK No 181/PMK.011/2009 regarding Tobacco Products Custom Tariff, in which the tariff will valid starting January 1, 2010.

Tobacco Tax

According to Yudi, this tax policy was set in order to achieve the revenue targets of the State Budget (APBN) in 2012 from tobacco excise sector, up to IDR 72 trillion, which is the agreement result on optimization of state revenue between the Government and Parliament.

Based on the PMK, the classification of tobacco product manufacturers still applying the 2011 policy, divided into two classes of manufacturers for the Clove Cigarettes Machine (SKM) and White Cigarettes Machine (SPM), and there are three classes of manufacturers for the Clove Cigarettes Hand (SKT).

As for the tariff structure, considering the results of the tobacco industry performance, the structure is simplified from 19 layers to 15 layers by combining multiple layers in some classes of types of tobacco.