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Therefore, he deemed that grouping of business clusters in cigarette industry needs to be a considered so that small and medium-scale cigarette manufacturers will not die out in facing the big-scale cigarette manufacturers.
“These small-scale manufacturers have little way of competing and they could suffer high losses eventually, and thus we need to see consider this loophole in that regulation,” he added.
Meanwhile, Head of the Center for State Revenue Policy (PKPN) of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Pande Putu Oka Kusumawardani, stated that the minimum consumer Price of 85 percent of the Banderole Price under Finance Ministry Regulation No. 152/2019 did not aim to allow discount for cigarettes.
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“Actually, we need to clarify that cigarette discount is not an appropriate terminology. This policy is a reflection and consideration of producer-to-consumer process chain that requires costs, so the government regulates consumer Prices below the banderole price,” Pande said.
Regarding the leniency for 50% areas under DGCE office stated in DGCE Regulation No. 37/2017, she said that all inputs would certainly be reviewed whether this mechanism was still operating in the field or needed adjustments.
“We will seriously consider input or aspirations from all parties regarding tobacco excise policies, including Finance Ministry Regulation No. 152/2019 or DGCE Regulation No. 37/2017,” she said.
