Finance Minister Plans to raise Cigarette Tax 10.54% in 2017

Finance minister sri mulyani plans to raise cigarette tax 10.54% in average in 2017. The aim is to decrease the the proliferation active smokers that even reach the teens underage. 

Sri mulyani stated the government to raise averagely 10.54%. The largest rate increase is applied to cigarettes tobacco machine that is 13.46% while the lowest is zero percent for hand rolled cigarettes.

The plan of tobacco tax increase rate in 2017 is lowest than the this year which 11.19%. This is considered to be too conservative. The tax increase will not definitely  restrain the rate of consumption in society. The plan of 10.54% tobacco tax raise in certain term is not pro for the health and economy sake of the people. This alludes to the reality how cigarettes become one of largest daily spending for active smokers. 

This is tantamount to say that tax as instrument to control the tobacco consumption is absolutely fail.

In perspective of macro economy, government policy on tobacco is only meant for the sake of economy growth and inflation controlling. This boost the expenditure through cigarette consumption thus in certain way indirectly helping the boost of economy