REPUBLIKA.CO.ID, JAKARTA -- Members of the House of Representatives Commission XI, Mukhamad Misbakhun, said constant increase of the cigarette excise rate has made the circulation of illegal cigarettes more intense.

Therefore, he thought it would not be appropriate if the government wished to increase the portion of its tax acquisition by raising the cigarette excise every year.

"Increasing the excise will further increase the circulation of illegal cigarettes," said the Golkar party politician in Jakarta, Tuesday (9/27).

Misbakhun added, the government should be aware the impact of illegal cigarette circulation. It has harmed the country earnings in significant number. "According to records, as a result of illegal cigarettes circulation, state loss is estimated to reach Rp9 trillion."

Throughout 2016, the Directorate General of Customs and Excise record there has been 1,300 cases of illegal distribution of cigarettes.

Misbakhun cautioned the government not to disabling the economic sustainability of the tobacco sector by ruling such a regulation, including cigarette excise levies. "I hope the regulations will protect tobacco industry and tobacco farmer so the economic independence as well as the ideals of Jokowi-JK government could come true," he said.

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