JAKARTA, Jan. 14 (Xinhua) -- The Indonesian government plans to add one additional layer to the cigarette excise tariff structure this year as part of efforts to curb illegal tobacco distribution, Finance Minister Purbaya Yudhi Sadewa said on Wednesday.
Purbaya said the policy is intended to provide room for illegal cigarette producers to shift into the legal market and fulfill their tax obligations.
"We will ensure that a new layer is possible. It is still under discussion," he told reporters in Jakarta.
The finance minister warned that strict sanctions would be imposed on businesses that continue to evade their obligations after the new regulation comes into force.
Indonesia has simplified its cigarette excise tariff structure over the years, reducing the number of layers from 19 in 2009 to eight in 2022. ■