The tobacco consumption tax rate is set to increase by 10% in 2023 and 2024. According to Mukhamad Misbakhun, a member of the DPR's eleventh committee, this will have a significant impact on the industry and may even lead to its demise.
This impact is actually stifling the industry. The most obvious reason for this is the decrease in cigarette production, which is currently happening," Misbakhun said on Tuesday (6/12/2022).
Misbakhun emphasized that another impact of the increase in tobacco consumption tax is the encouragement of inflation in the region. As a result, tobacco farmers are the victims of the increase in tobacco consumption tax.
In fact, Misbakhun said that farmers are considered one of the most important links in the tobacco industry cycle in Indonesia.
These farmers have never been included in any development plans, whether it's the tobacco consumption tax revenue sharing fund or the agriculture department's budget confirmation," he said.
Whether it's fertilizer subsidies, seed subsidies, pesticide subsidies, or any other form, tobacco farmers don't even have a budget of one rupee," he added.
Earlier, the government announced through the Ministry of Finance that the tobacco consumption tax (CHT) will be increased on November 3, 2022.
It is expected that the average increase in the traditional cigarette consumption tax over the next two years will be 10%. Over five years, the average growth rate for the electronic cigarette (REL) group is expected to be 15%.
2FIRSTS will continue to follow and report on this topic, with further updates available on the '2FIRSTS APP'. Scan the QR code below to download the app.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
