Jakarta, VIVA – Several representatives of the tobacco ecosystem assess that the various new regulations issued by the government on the national tobacco sector have become an additional burden that may end the sustainability of the tobacco industry (IHT) in the country.
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These regulations include Government Regulation (PP) No. 28 of 2024, plans
Photo / Tobacco farmers in East Java
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Plain and unbranded cigarette packaging in the Draft Regulation of the Minister of Health (RPMK), to increase the excise tax on tobacco products (CHT) scheme in 2025.
Indonesian Tobacco Community Union (AMTI) President General I Ketut Budiman Mudhara said the planned increase in CHT will definitely be an additional burden for IHT activists.
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“Our special tax burden is currently too heavy. So let’s not increase it again in 2025, because the burden will increase even more. It is already heavy now, if it increases even a little, it will be even heavier (burden),” Budiman said in a statement on Saturday, September 21, 2024.
According to him, the continued decline in state revenue from excise duty means that it really shows that the increasing burden of CT is already too much. “I think this increase in excise duty has reached its limit, so the implementation of IHT will be compromised. “It is hoped that excise duty will not increase further,” he said.
Budiman added that the burden on the industry is also currently heavier with the issuance of PP 28/2024 and the plan to package ordinary cigarettes without labels in RPMK. According to him, this government policy has actually destroyed the subsystems and components of the tobacco ecosystem.
“Well, as in the case of PP 28/2024 and RPMK, there are many bans that interrupt the downstream and reduce production to automatically interrupt the upstream as well. Not only that, the workforce, including tobacco and pepper producers, also decreases. “Everyone loses,” Budiman said.
He pointed out that RPMK’s threats to plain and unbranded cigarette packs will also increase the burden on IHT. His party saw that PP number 28/2024 and RPMK were not comprehensive from the start.
In fact, IHT is the only national industry that is more sophisticated and integrated from top to bottom, and its contribution to public finances is very important.
“In fact, if the Department of Health approves these regulations, it will be like leaving IHT in the void and our contribution will be ignored. We have seen problematic and discriminatory articles about PP Salud, including unbranded cigarette packets. We refuse,” he said.
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Budiman added that the burden on the industry is also currently heavier with the issuance of PP 28/2024 and the plan to package ordinary cigarettes without labels in RPMK. According to him, this government policy has actually destroyed the subsystems and components of the tobacco ecosystem.
