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Indonesia protests over cigarette tax
Cigarettes to compete with cheaper-to-produce machine-made cigarettes. the protesters, organized by the Indonesian cigarette companies association, ... In Indonesia, thousands of people have demonstrated in several East Java towns against government plans for a sharp increase in tax on hand-made clove cigarettes.
It is estimated that more than half a million people depend on the industry for their livelihood. The new 22 per cent tax will make it more difficult for hand-made clove cigarettes to compete with cheaper-to-produce machine-made cigarettes. The protesters, organized by the Indonesian Cigarette Companies Association, also accuse the government of protecting the interests of big cigarette companies by limiting the production income of smaller firms to about $US75,000 a year.
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