Cigarette Workers Denounce Unproportional Tax Rise

Thousands of cigarette factory workers in Malang took to the streets on Monday to protest the unproportional tax rise on cigarette to take effect in January next year which workers feared would kick small factories out of business.
About 3,000 workers rallied outside the Custom and Excise Office in Malang municipality to denounce the 62 percent tax rise planned for cigarettes produced by small companies and the seven percent tax rise to be charged from big cigarette companies.
Coordinator for the the protester Heri Susianto said “the rise for 3rd grade producers is 62 percent, while for higher grade (indicated with smaller number) producers only seven percent.”
Workers predicted there would be many small cigarette factories closing their business if the regulation imposed next year which in turn will create unemployment problems.
Factories, Heri said could could immediately jack up sales price to deal with the tax rise. Spokesman for the workers, Chotib Batubara said, the measure will send a shocking economic impact to the workers.