2024 Tobacco Tax to Increase by 10% in Indonesia

Market by 2FIRSTS.ai

Dec.19.2023

2024 Tobacco Tax to Increase by 10% in Indonesia

Indonesia to raise tobacco tax by 10% and e-cigarette tax by 15% in 2024, according to finance ministry.

According to an article by Indonesian media outlet Viva on December 18th, the Directorate General of Customs and Excise (DJBC) at the Indonesian Ministry of Finance has confirmed that tobacco taxes (Cukai Hasil Tembakau, CHT) will increase by 10% in 2024, while e-cigarette taxes will rise by 15%. The decision to implement these hikes is based on the consideration of four key factors.

This arrangement is explicitly specified in Decree No. 191 of the Ministry of Finance in 2022, commonly known as PMK (Peraturan Menteri Keuangan). This regulation mainly covers the tobacco tax rates for cigarettes, cigars, rolled tobacco, hand-rolled cigarettes, and cut tobacco (Tembakau Iris, abbreviated as TIS).

Earlier, Askolani, the Director General of Taxation at the Indonesian Ministry of Finance, also stated that they have prepared approximately 17 million tobacco tax stamps for January 2024. This aligns with their strategy to raise tobacco tax rates in 2024.

References:

[1] Penjelasan Lengkap Kemenkeu soal Tarif Cukai Rokok Naik 10 Persen dan Elektrik 15 Persen

Also Read:

[1] Inclusion of E-cigarette Devices in 2024 Inflation Calculation

[2] JVS Founder Plans International Expansion for IdPods E-Cigarette

[3] Indonesia Government Actively Promoting Smoke-Free Zones to Achieve Goals

[4] Indonesian E-cigarette Industry Opposes Proposed Tax Increase

#Traditional tobacco #Legislation #Asia #Indonesia #E-cigarette Taxes

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