Regulation of Finance Minister Regulates the Price of Cigarettes as of 1 January 2017
Date 10 Oktober 2016
The Regulation of Minister of Finance Number 147/PMK.010/2016 on Third Amendment of Regulation of Minister of Finance Number 179/PMK.011/2012 on Excise Tariff of Tobacco Products, that has been signed by Minister of Finance Sri Mulyani Indrawati on 30 September 2016, besides increasing cigarette excise tariffs by 10.54 percent, it also regulates cigarettes Retail Price that will come into effect as of 1 January 2017.
When the Regulation takes effect, redetermined excise tariff shall not lower than the current tariff and retail selling price shall not lower than the current Retail Price Limit per Stick/Gram.
The provisions of Retail Price Limit per Stick/Gram as mentioned in Appendix II (domestic products) and III (imported tobacco products), shall take effect on 1 January 2017, Article 2 paragraph 2b and c of the Regulation says.
Cigarette Selling Price
Referring to that Regulation, as of 1 January 2017, the lowest Retail Price for Machine-made Rolled Clove Cigarettes (Sigaret Kretek Mesin) is Rp655,00 (previously Rp 590,00); while for Machine-made White Cigarettes (Sigaret Putih Mesin) is Rp585,00 (previously Rp505,00); Handmade Cloves Cigarettes (Sigaret Kretek Tangan) or Handmade White Cigarettes (Sigaret Putih Tangan) is Rp400,00 (previously Rp370,00); and Filtered Handmade Cloves Cigarettes (Sigaret Kretek Tangan Filter) and Filtered Handmade White Cigarettes (Sigaret Putih Tangan Filter) is Rp650,00 (previously Rp590,00).
Meanwhile, the lowest retail price of Machine-made Rolled Clove Cigarettes of imported tobacco products is Rp1,120,00; Machine-made White Cigarettes is Rp1,030,00; Handmade Cloves Cigarettesor Handmade White Cigarette is Rp1,215,00; and Filtered Handmade Cloves Cigarettes and Filtered Handmade White Cigarettes is Rp1,120,00.
As previously reported, the Minister of Finance Regulation has mentioned that the considerations of the Government in increasing the cigarettes excise tariff and the retail price of tobacco cigarette are to increase the control of excisable consumption products in form of tobacco and to pay attention to sustainable potential revenue of tobacco products excise.
This Minister Regulation shall apply as of the date ot its enactment, says Article II paragraph (3) of the Regulation of Minister of Finance Number 147/PMK.010/2016 promulgated by Director General of Law and Regulation of the Ministry of Law and Human Rights Widodo Ekatjahjana on 4 October 2016.(JDIH Kemenkeu/ES)(MMB/YM/Naster)