REPUBLIKA.CO.ID, JAKARTA – Government prepares a new move to reduce smoking habit as the increasing of cigarette tax is not success. The Coordinating Minister of Economy, Hatta Rajasa, admitted the increasing cigarette tax had not given serious impact because its production also increased.

“The population is greater. The production also increases,” he said on Thursday.

Thus, government will impose governmental regulation draft (RPP) on tobacco which targets the smokers’ awareness. Some of the regulations are the big warning sign or writing, in about 40 percent, on the package; the restriction on cigarette advertising; and the restriction of cigarette sellers.

“With this regulation, I hope people will aware,” he said.

Yet, the increasing of tax was still possible as long as it was sensible, he said. Cigarette industry contributes much to the state’s revenue. The Head of Fiscal Policy Office in the Ministry of Finance, Bambang PS Brodjonegoro, said the tax revenue of cigarette was big, even surpassing the target.

“On 2011, cigarette tax contributes to 77 trillion IDR in state revenue,” he said. The number surpasses the last year target on 60.7 trillion IDR. The target for this year is 72.4 trillion IDR. 

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