A proposed increase in Indonesia’s cigarette production limits is facing backlash, with critics warning it could negatively impact state revenue. The plan, specifically targeting lower-tier machine-made cigarettes, would allow companies to expand production without moving into higher tax brackets. This means firms could increase output and profits while continuing to pay lower excise taxes. Experts argue the measure creates a loophole, potentially undermining government income from cigarette taxes. Concerns center on the potential for reduced revenue at a time when the state is seeking to bolster its finances. The proposal is being scrutinized for its potential to benefit cigarette manufacturers at the expense of public funds. Officials have yet to respond to the criticisms.
