Cigarette Dual Taxes, House Claims No Mistake of the Act
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Member of Commission III, Sarifuddin Suding presents in the advanced trial on judicial review of Regional Tax Act and Area Retribution, Thursday afternoon, (08/22/2013) says Act on Regional Tax and Retribution is in conformity with the 1945 Constitution, as has been apply the principle of legal certainty that ensures no differences in treatment accorded to consumers of cigarettes.

Parliament considers the publication of Act on Regional Tax and Retribution is a monumental step in establishing the strategic and fiscal decentralization policy, in particular in order to build relationships and regional financial centers are more ideal. In other words, the high taxes imposed on cigarettes is fully intended to boost local revenues which in turn will contribute to the national income economy, so the government can re-distribute the health budget, law enforcement and other sectors.

Parliament argued further, the double taxation on cigarettes not overload society because of cigarettes is not an essential goods and even a certain level of consumption needs to be controlled.

MK Media encountered after reading the official description Parliament, Sarifuddin Suding admitted, compared to countries in Asia Pacific, Indonesia occupies the lowest position in the determination of excise duty. "Other countries are much larger cigarette tax. We are only 36%, while Singapore 64%, Thailand 63%, Philippines 49% and Vietnam 45%. We must look at the positive side, we expect higher cigarette taxes will reduce the number of new smokers," explained Sudding.

On the other hand, Applicant Robikin Emhas insisted that the claim can be granted by the Court, that the double taxation on one type of commodity contrary to the constitution. "We had an interesting analogy, when Constitutional Court annuls the provisions of the double taxation on the sport of golf, which can be taxed sports and entertainment tax. MK invalidates that provision. We believe the Court will grant our demands," said Emhas at MK Media. (Julie / mh)


Thursday, August 22, 2013 | 18:46 WIB 141