Value Added Tax (VAT) Tobacco rose 0.4 percent

The government decided to hike Value Added Tax (VAT) on Submission of Tobacco from 8.7 percent to 9.1 percent. The rules set forth in Regulation of the Minister of Finance (PMK) Number 207 / PMK.010 / 2016 on Procedures for calculation and the collection of VAT top Submission of tobacco products is effective since January 2017's.

Head of fiscal policy (BKF) Ministry of Finance Suahasil Nazara explained that this policy makes producers have to bear the VAT by 9.1 per cent in cigarette products. Suahasil asserted that the move to raise the cigarette VAT has been through in-depth discussion included along with the national cigarette manufacturers.

"Anyway that was decided last be 9.1 percent. Because if levied in the final means at the producer level is not 10 percent but 9.1 percent. We do that for our policy, we've had discussions. So buakn" dead. "Dead if decided unilaterally by minister of Finance, "said Suahasil in the Ministry of Finance, on Monday (9/1).

Even so, Suahasil claimed not to know in detail how a potential surge of state revenue derived from VAT increase cigarette this time. The government hopes could gradually raise cigarette VAT to a level of 10 percent by 2019 to come.

"Thus, in principle, we would like PP was returned to the general provisions. It is now 9.1 percent, final. Yes I have it first. Later we will see again, but her remains to normal (10 percent)," he said.