Cigarette excise is rumored to rise next year, feared it will have a serious impact on workers – Excise revenue in 2022 is targeted to increase by 11.9% to Rp 203.9 trillion. Tobacco excise tax (CHT) is predicted to increase with this policy.

The CHT tariff has also been proposed to increase above 20%, the same thing happened to the retail selling price (HJE) of cigarettes.

However, member of the Presidential Advisory Council (Wantimpres) Soekarwo hopes that the government will not increase the excise rate for hand-rolled kretek cigarettes (SKT) in 2022 for the sake of protecting workers.

The reason is because it is feared that the increase in SKT excise rates in the midst of the Covid-19 pandemic will have a significant impact because this sector absorbs hundreds of thousands of workers

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“If the SKT excise tax is increased, unemployment will be extraordinary,” said Soekarwo, quoted from – network.

The man who once served as the Governor of East Java claimed that around 70 percent of workers in the SKT sector are women who are the breadwinners of the family.

Meanwhile, their husbands are generally workers or unskilled laborers who work odd jobs due to the COVID-19 pandemic.

In addition, he said, the policy of not increasing the SKT excise rate would provide a concept of justice in managing the economy.

Separately, Chairman of the Indonesian Cigarette Production Partners Association (MPSI) Sriyadi Purnomo said MPSI has now succeeded in absorbing around 6,000 additional SKT workers in 2021.

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In this regard, Gadjah Mada University sociologist, AB Widyanta said, regardless of the nominal CHT applied, the government should not ignore tobacco farmers.

Source: by

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