70% Of Cigarette Tax Revenue to Cover Healthcare Costs
After a number of discussions, the regulation draft of cigarette excise is completely ratified into regulation by Jakarta Parliament (DPRD). Besides regulating 10% raise on cigarette excise, the regulation is also controlling the consumption of tax revenue received, where 70% of it will cover healthcare costs in Jakarta.
Merry Hotma, a member of Jakarta Parliament Legislation Body (Balegda), told the ratification of Cigarette Tax Bylaw is putting into practice of Article 2 Act No. 28/2009 about Regional Tax and Retribution.
The act controls that regional governments are given authorities to gather several new excise types, including cigarette excise. The act says that there must be new bylaw adopted in the next year. The excise will be gathered by the Customs together with cigarette tax collection. The Cigarette Tax Bylaw controls tax subjects, taxpayers, tax collection mechanisms, tax objects, tax imposing bases, and also tax tariff as much as 10% of cigarette excise.
Cigarette Tax Bylaw is controlling the consumption of cigarette excise collection which will be allocated at least 70% to finance healthcare service programs with smoking impact handling.
Iwan Setiawandi, the Head of Jakarta Tax Services Department, said that cigarette tax will be imposed to cigarette importers during excise buying. The amount of cigarette tax is 10% of excise value. The payment from cigarette importers will be gathered first by the central government before supplying it to every regional government based on their respective population amount. It is expected that excise amount collected by central government will be Rp 116 trillion. It means that Jakarta Provincial Government would get excise revenue for as much as Rp 400 billion each year.
If Jakarta population reached 4% of national population, Jakarta Provincial Government could get up to Rp 400 billion per year.
Setiawandi confirmed that 70% of cigarette excise collection received will be given for public healthcare services which relate to smoking impact handling. Form of healthcare services to be used depends on Jakarta Health Department.
It should be noted that at least 70% of cigarette tax collection received will be dedicated for public health's recovery caused by smoking. What it would be like, it depends on Jakarta Health Department that will formulate activities.
Jakarta Governor Joko Widodo evaluated that it is very suitable if cigarette tax collection received being given to healthcare. Many people in Jakarta got sick for smoking. Thus, the tax paid by residents is returned to cover their healthcare needs.
Merry Hotma, a member of Jakarta Parliament Legislation Body (Balegda), told the ratification of Cigarette Tax Bylaw is putting into practice of Article 2 Act No. 28/2009 about Regional Tax and Retribution.
The act controls that regional governments are given authorities to gather several new excise types, including cigarette excise. The act says that there must be new bylaw adopted in the next year. The excise will be gathered by the Customs together with cigarette tax collection. The Cigarette Tax Bylaw controls tax subjects, taxpayers, tax collection mechanisms, tax objects, tax imposing bases, and also tax tariff as much as 10% of cigarette excise.
Cigarette Tax Bylaw is controlling the consumption of cigarette excise collection which will be allocated at least 70% to finance healthcare service programs with smoking impact handling.
Iwan Setiawandi, the Head of Jakarta Tax Services Department, said that cigarette tax will be imposed to cigarette importers during excise buying. The amount of cigarette tax is 10% of excise value. The payment from cigarette importers will be gathered first by the central government before supplying it to every regional government based on their respective population amount. It is expected that excise amount collected by central government will be Rp 116 trillion. It means that Jakarta Provincial Government would get excise revenue for as much as Rp 400 billion each year.
If Jakarta population reached 4% of national population, Jakarta Provincial Government could get up to Rp 400 billion per year.
Setiawandi confirmed that 70% of cigarette excise collection received will be given for public healthcare services which relate to smoking impact handling. Form of healthcare services to be used depends on Jakarta Health Department.
It should be noted that at least 70% of cigarette tax collection received will be dedicated for public health's recovery caused by smoking. What it would be like, it depends on Jakarta Health Department that will formulate activities.
Jakarta Governor Joko Widodo evaluated that it is very suitable if cigarette tax collection received being given to healthcare. Many people in Jakarta got sick for smoking. Thus, the tax paid by residents is returned to cover their healthcare needs.
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