147 Cigarette Companies in Malang are Threatened by Bankruptcy
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A total of 147 tobacco companies (PR) small in Malang (Malang, Batu, and Regency. Malang) threatened collapse if the Ministry of Finance (PMK) 167/2011 on the Excise Tariff imposed because of the increase is considered to be too high.
Chief Executive of the Public Forum All Indonesian Cigarette Industry (Formation) Susianto Heri, said referring to the new FMD then later machines clove cigarette excise tax (SKMO) class II, layer II, up from Rp170 to Rp235 per rod per stem or the increase is nearly 40%.
“Hands kretek cigarettes (SKT) a small increase was small, an increase of Rp 10 per stem from a Rp75 Rp65 per rod per stem. However, SKT cigarette production from 400 million stems of small to Rp300 million stems per year. That is, the production of SKT 400 million per year to the next grade and tariffs of the tax are automatically certainly higher, “said Heri Susianto in Malang, today.
With the cigarette excise tax amounting to Rp235 per stem SKM, then the selling price is at least Rp8.500 per pack. Price of cigarettes produced little PR for it, then the price of cigarettes would be too high. Consumers value for the price of cigarettes was too expensive because it includes categories of suguh smokers, nonsmokers loyal to certain brands.
Moreover, a small PR still have to compete with cigarettes small PR affiliated with or owned by a big PR. They could sell cigarettes SKM Rp5.500 per pack.
With such conditions, the PMK is clearly hitting a small PR. They almost certainly can not compete with the big PR because the smokers have different characteristics.
For large public relations, issues rise in cigarette prices are not too bothered them as loyal customers. Smokers are not too bothered if the well-known brand of cigarettes rises. If it was affected in its sales, its only temporary.
The increase in the cigarette excise tax rates, he surmised, because the government asked parliament to raise cigarette tax revenue target in 2012 to Rp72, 4 trillion. Means there is increase in revenue of Rp2, 4 trillion.
Constitutional Court, he values, disability law. Because FMD was previously not well socialized to other stakeholders, such as public relations people. On November 7, PR-PR associations joined in several meetings with the Fiscal Policy Office (BKF) Ministry of Finance. During the meeting, he questioned the basis of the government raising tax revenues.
BKF answer, at that time, the target revenue BKF still not been established. “But on November 9, No. FMD was already signed. 167/2011, “said Heri.
Therefore, PR-PR in Malaysia agreed to reject the PMK. Form of rejection of these regulations, labor relations in Malang, Holy, Tulungagung, and Blitar will demo at the Regional Office of the Directorate General of Customs in Malang East Java II.
There were 20,000 workers PR will follow the action. Workers are called to do a demo because they are threated by termination of employment (FLE) if PR-PR where they work must be closed due to the enactment of FMD is because of competition from big PR.