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.

 

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

Kazakhstan Public Health Law Amendments Take Effect: Full Ban on Heated Tobacco, E-Cigarettes, and Vape Liquids
Kazakhstan Public Health Law Amendments Take Effect: Full Ban on Heated Tobacco, E-Cigarettes, and Vape Liquids
Kazakhstan has imposed a total ban on smokeless tobacco products and e-cigarettes, with violators facing up to five years in prison.
Jul.22 by 2FIRSTS.ai
UK Survey: A Quarter of Vape Retailers Still Selling Banned Disposable Products
UK Survey: A Quarter of Vape Retailers Still Selling Banned Disposable Products
Secret shoppers from Haypp found 23% of vape stores in nine UK cities, including London and Glasgow, still selling banned disposables a month after the ban. Meanwhile, 34% of users said they would keep buying them, highlighting black market demand.
Jul.17 by 2FIRSTS.ai
Russian Academy of Sciences Scholar Calls for Comprehensive Ban on Tobacco Sales
Russian Academy of Sciences Scholar Calls for Comprehensive Ban on Tobacco Sales
Russian scientist advocates for complete ban on tobacco sales, emphasizing importance of anti-smoking legislation to improve public health.
Aug.07 by 2FIRSTS.ai
Special Report | Ukraine’s Tobacco Market in Wartime: Cigarettes Dominate, All Nicotine Products Rise
Special Report | Ukraine’s Tobacco Market in Wartime: Cigarettes Dominate, All Nicotine Products Rise
Under the shadow of war, Ukraine’s tobacco consumption surged, with nearly half of adults smoking and cigarettes dominating the market. Use of heated tobacco and e-cigarettes also increased. The illicit market rebounded, lawmakers restricted advertising, and tax hikes were delayed, creating complex industry challenges.
Jul.11
Turkey’s Mersin Police Seize Over 700,000 Smuggled E-Cigarettes; Suspect Referred to Judiciary
Turkey’s Mersin Police Seize Over 700,000 Smuggled E-Cigarettes; Suspect Referred to Judiciary
Turkish police in Mersin have uncovered a major e-cigarette smuggling case, seizing 701,600 illicit items. The suspect has been detained and investigated, with the case now moving into judicial proceedings.
Aug.15 by 2FIRSTS.ai
Philippine Vape Industry Observers: Market Entering a “Turbulent Phase” Amid Growing Uncertainty
Philippine Vape Industry Observers: Market Entering a “Turbulent Phase” Amid Growing Uncertainty
Since July, the Philippine NBI has stepped up its vape crackdown, reclassifying illegal sales from commercial to criminal offenses and seizing over PHP 44 million in products. Industry insider Lucas sees this as both a response to the black market and a political power struggle. With legal channels shrinking and illicit trade rising, the vape sector faces unprecedented turmoil.
Jul.10 by 2FIRSTS.ai