| Government Will Restrict Cigarette Production |
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| Wednesday, 09 December 2009 16:41 | |||
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Jakarta - The government will limit the domestic cigarette production began in 2015 to only about 260 billion sticks, in line with the "roadmap" of the tobacco industry (IHT) 2007-2020, as Director of Beverage and Tobacco Industry Ministry of Industry Warsono in Jakarta, Monday. "The growth of tobacco production will be flat or up only about 3-5 billion sticks per year," said Warsono through cross-sector discussions about the tobacco economy. Cigarette production in 2008 reached 240 billion sticks, and is expected to reach 245 billion sticks in 2009. IHT in the road map, in the short term (2007-2010) will be emphasized by the tobacco industry on the labor aspects of balance and acceptance, as well as simplification of policy through the tax system combining factory class, the application of specific tax rates and handling of illegal cigarettes. In the medium term (2010-2015) the priority aspects of acceptance and health, whereas long-term (2015-2020) exceeded the health aspects aspects of labor and revenue. Meanwhile, Head of Customs and Excise Policy II Djaka Kusmartata Treasury Department said in 2010 state budget revenue target from cigarette excise tax of Rp55, 9 trillion, an increase from Rp54, 4 trillion in 2009, and Rp49 trillion in 2008. "Acceptance of foreign exchange through export of cigarettes in the last five years increased by an average 24 percent from 157.61 million in 2004 to 359.68 million in 2008," said Djaka. The government set the tobacco excise tax rates on average by 15 percent effective effective from January 1, 2010, while cigarette import duties assigned 40 percent, with tax charged Rp325 per stem. According to the records, employment directly and indirectly on the IHT reach 6.1 million people, consisting of 2 million farmers of tobacco, cloves 1.5 million farmers, 600,000 factory workers, 1 million people a cigarette merchants, and 1 million printing press workers, advertising, transportation and transportation services. According Deperin, the number of cigarette producers currently reached 3250 units of which 95 percent tobacco companies small and medium businesses. (*) (ANTARA News)
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