Jakarta, CNBC Indonesia – Cigarette stock prices are predicted to be ready to move wildly in today’s trade, Thursday (19/11/2020) after Finance Minister Sri Mulyani gave a signal that she will not increase cigarette excise tax in 2021. The government seems to be considering many aspects due to the COVID-19 pandemic.
The CNBC Indonesia Research Team assessed that the news would have an impact on cigarette producer stocks listed on the Indonesia Stock Exchange (IDX). In yesterday’s trading, Wednesday (18/11), cigarette stocks recorded a stronger price.
Shares of PT Gudang Garam Tbk (GGRM) were recorded to have increased by 1.06% to the price of Rp 42,425 / unit. Then the shares of PT Bentoel International Tbk (RMBA) rose 0.55% to a price of Rp 368 / unit.
However, PT HM Sampoerna Tbk (HMSP) shares fell 1% to Rp.1,485 / unit and PT Wismilak Inti Makmur Tbk (WIIM) shares fell 0.92% to Rp 540 / unit.
Yesterday, Finance Minister Sri Mulyani Indrawati again questioned the cigarette excise policy. The minister emphasized that every policy taken always considers many things in order to remain balanced. However, there are always pros and cons.
One of them is related to next year’s tobacco excise tariff (CHT), which is currently still being drafted. He said that the policy would listen to input from various parties and consider all aspects.
However, there will still be parties who disagree. He said that one form of protest carried out was demonstration.
“There was a demonstration from cigarette workers, they came to Monas to meet the President, then there were farmers who also asked not to go up. So imagine on one side the demonstration asked not to go up, on the other hand someone asked to go up really high,” he said at webinar virtual, Wednesday (18/11/2020).
According to him, looking for a balance between the two things is what the Ministry of Finance is currently doing. He wants this cigarette excise tariff not to harm or benefit a handful of parties.
“We just try to balance it, meaning that no one feels he has won the most. So we will continue to conduct studies,” he explained.
This state treasurer explained, there were at least five considerations made by the government before establishing this cigarette excise policy. Starting from health, labor, tobacco farmers, illegal cigarettes and state revenue.
He hopes that there will be no significant increase for illegal cigarettes because the increase in tariffs will make cigarette prices in the market even higher.
“There are people who have an incentive to make illegal cigarettes, the higher the price the more happy they are to make illegal cigarettes, because the difference between the market price and the illegal ones will be very large,” he said.
Therefore, currently all these considerations are being put together in order to achieve a good policy for all parties.
“So we will balance between them. Later we will issue them on time and the goal is to be able to achieve the most optimal goals in quite a lot of objectives,” he said.
(hps / bag)
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