Jakarta, Nov 4: The Indonesian government has decided to increase cigarette excise tax to reduce smoking among youngsters and increase awareness about the dangers, Finance Minister Sri Mulyani said.
The meeting on tobacco excise policy led by President Joko Widodo at the Bogor Presidential Palace said the government would increase the excise rate for machine-made clove cigarettes from 11.50 to 11.75 per cent, white cigarettes from 11.00 to 12.00 per cent, and hand-rolled cigarettes at an average 5 per cent, reports Xinhua news agency.
The increase in excise rates will also apply to electronic cigarettes by an average rate of 15 per cent.
"Cigarettes are the second highest consumption by urban poor households at 12.21 per cent and rural at 11.63 per cent, also one of the causes of stunting and death," said Minister Mulyani.
In its National Medium-Term Development Plan for the 2020-2024 period, Indonesia targets to reduce the prevalence of smokers in youth aged 10 to 18 years from 9.1 per cent to 8.7 in 2024.