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

South Korea’s National Assembly Passes Law Classifying E-Cigarettes as Tobacco Products with Full Equivalent Regulation
South Korea’s National Assembly Passes Law Classifying E-Cigarettes as Tobacco Products with Full Equivalent Regulation
South Korea’s National Assembly recently passed a comprehensive package of 79 bills that, among other measures, formally classifies liquid vapes — e-cigarette products using nicotine-containing e-liquids — as tobacco products. These products will now be subject to the same taxation, sales restrictions and advertising controls as traditional cigarettes, and the vaping industry in South Korea is expected to face significant adjustments in compliance costs, market access and business strategy.
Dec.03
Azerbaijan Considers Comprehensive Ban on E-cigarettes
Azerbaijan Considers Comprehensive Ban on E-cigarettes
Azerbaijan is advancing legislative amendments to prohibit the circulation of electronic cigarettes and their components. The proposed changes, discussed at a joint meeting of several parliamentary committees, aim to ban the import, export, production, storage, wholesale and retail sale, and use of e-cigarettes.
Dec.17 by 2FIRSTS.ai
Councils Remove 1.2 Million Illicit Vapes from UK High Streets
Councils Remove 1.2 Million Illicit Vapes from UK High Streets
UK council data shows that two illegal vapes were seized every minute in 2025, with a total of 1.2 million illicit vapes removed from high streets. Over the past year, authorities also seized millions of illegal cigarettes and other nicotine products. Consumer surveys indicate that more than half of UK vapers believe they have unknowingly purchased illegal vaping products.
Dec.23 by 2FIRSTS.ai
U.S. Fifth Circuit judges question FDA’s claim it has no de facto ban on flavored refillable e-cigarettes
U.S. Fifth Circuit judges question FDA’s claim it has no de facto ban on flavored refillable e-cigarettes
Law360 reports that a Fifth Circuit panel expressed skepticism about the FDA’s claim that it has no de facto ban on flavored refillable e-cigarette products, noting that only six applications had been approved out of hundreds of thousands and that near-100% denials look like a ban.
Jan.07 by 2FIRSTS.ai
Russia's Perm Legislators Approve Full Ban on Vape Products in Regional Retail Market
Russia's Perm Legislators Approve Full Ban on Vape Products in Regional Retail Market
2Firsts, November 28, 2025 — The Legislative Assembly of Perm Krai has passed a law banning the retail sale of vape products and other nicotine-aerosol devices, effective March 1, 2026. Individuals found selling such items will face fines between ₽15,000–₽20,000 (about US $180–240), while companies face ₽50,000–₽100,000 (about US $600–1,200). The ban covers all electronic nicotine delivery systems (ENDS), heated-tobacco devices, and their components, regardless of nicotine content.
Nov.28 by 2FIRSTS.ai
Scottish Retailers Urge Government to Fast-Track Nicotine Pouch Regulations
Scottish Retailers Urge Government to Fast-Track Nicotine Pouch Regulations
The Scottish Grocers’ Federation (SGF) is calling on the government to clarify the regulatory framework for nicotine pouches in order to prevent high-strength and illegal products from entering the market, stressing that these products should not be targeted at minors.
Dec.04 by 2FIRSTS.ai