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Taxing Coffin Nails

Bali to Earn Estimated US$12.5 million in Tobacco Tax Revenue in 2014


Bali News: Taxing Coffin Nails
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(3/9/2014)

While the Bali provincial government is taking steps to reduce the use of tobacco products through new anti-smoking regulations and the recent last-minute cancellation of major international tobacco exhibition in Bali, the national tax revenues Rp. 100 trillion (US$8.3 billion) generated by tobacco sales have the potential of generating hundreds of billions in Rupiahs with a share in these tax for Bali.

Quoted by Radar Bali, a tax official said: “The province of Bali has the potential of earning regional tobacco tax revenues of around Rp. 150 billion (US$12.5 million) or about 1.5% of the total tobacco taxes collected in Bali in 2014.

The distribution of a share in tobacco taxes is based on Law No. 28 of 2009 and calculated based on the estimated 4 million residents of the province against the total population of Indonesia.

The province’s share of tobacco tax revenues is paid by the national government once every quarter.

Existing regulations require that 50% of the share in tobacco taxes be allocated for public health and law enforcement. Portions of these funds are use for public education on the dangers of smoking.

Meanwhile, anti-smoking groups are calling on the provincial government of Bali to formulate a clear and detailed program to discourage smoking and reduce the number of people smokers in Bali.

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