Illegal Cigarette Sales and Tax Evasion in Magelang, Indonesia

Regulations by 2FIRSTS.ai

Jan.11.2024

Illegal Cigarette Sales and Tax Evasion in Magelang, Indonesia

Illegal cigarette sales continue in Magelang City, Central Java, Indonesia, despite the government's increasing tobacco taxes.

According to a January 9 report by the Indonesian newspaper "KOMPAS," despite the government's ongoing efforts to increase cigarette taxes, there is still illegal sale of cigarettes occurring in Magelang City, located in Central Java Province. In these locations, some illegal cigarettes are using counterfeit tax stamps.

Since January 2024, the government has implemented an upgraded tobacco tax rate policy. According to Regulation No. 191 issued by the Ministry of Finance in 2022, the tobacco tax for traditional cigarettes has increased on average by 10%, while the tax rate for e-cigarettes has risen by an average of 15%. Additionally, the average tax rate for other tobacco products has increased to 6%.

This policy has prompted some smokers to reconsider their expenses, such as 33-year-old Fajar Dharmawan. He stated that due to the increase in tobacco taxes in 2021, he has turned to the relatively more affordable option of e-cigarettes.

Although this tax policy may seem to swiftly restrain user behavior, its objective is not only to control health issues caused by cigarettes but also to increase government revenue.

The Indonesian tobacco industry aims to achieve a tax revenue target of 230.4 trillion rupees in 2023, accounting for 95% of the total tobacco tax revenues for that year.

References:

[1] Kenaikan Cukai Rokok dan Kinerja Emiten

Also Read:

[1] Indonesian Customs Seize Large Amount of Untaxed Cigarettes

[2] The Misconceptions and Dangers of E-cigarettes: Indonesian Perspective

#Traditional tobacco #Legislation #Asia #Indonesia #E-cigarette Taxes #Illegal e-cigarettes

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

India’s NUSRL Hosts National Consultation on Protection from Emerging Tobacco and Nicotine Products

The National University of Study and Research in Law (NUSRL) in Ranchi, together with national and international public health experts, held a consultation focused on youth protection, enforcement capacity, and the regulatory landscape for emerging nicotine products. State Health Minister Irfan Ansari called for stronger policies and coordinated efforts to prevent addiction.

Dec.02

Product | LOST MARY, ELFBAR & VOZOL Debut 2 mL Replaceable-Pod Devices: Three-Model Comparison

Several brands launch 2 mL replaceable-pod vapes—Lost Mary Glayce, ELFBAR ELFA “Stein,” VOZOL SLEEK—highlighting rechargeability, pod swaps, and a compliance- and sustainability-led trend.

Oct.27 by 2FIRSTS.ai

Denmark Proposes Sharper Tax Hike: Heated Tobacco Up 132%, Nicotine Pouches Facing 1,000% Increase

According to foreign media, the European Union will examine a strengthened Danish proposal to amend the Tobacco Excise Directive. The plan introduces sharper tax increases on heated tobacco, nicotine pouches and other products. Despite overwhelming public opposition in earlier consultations, the revision continues to move forward, raising concerns about supply chain impacts and potential growth in illicit trade.

Dec.04

RLX Technology Inc. (NYSE: RLX) Q3 2025 Financial Results: Net Revenue US$158.6 Million; International Business Accounts for 72%

RLX Technology Inc. (NYSE: RLX) announced its unaudited financial results for the third quarter of 2025. The company reported net revenue of RMB 1.13 billion, up 49.3% year-on-year, and adjusted net profit of RMB 295.4 million, up 1.4% quarter-on-quarter. International business contributed 72% of total revenue, reflecting robust financial performance and continued shareholder returns.