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

Make Your Brand Understood by the People Who Matter
Make Your Brand Understood by the People Who Matter
Feb.02
PMI reshuffles U.S. footprint: Swedish Match to shut Richmond office in April; most staff may be relocated
PMI reshuffles U.S. footprint: Swedish Match to shut Richmond office in April; most staff may be relocated
Swedish Match, a unit of Philip Morris International (PMI), will close its office in Richmond, Virginia, in April 2026 and eliminate 135 positions. PMI said the move is tied to adjustments in its U.S. operating footprint.
Feb.03
Mexico’s ENCODAT 2025 finds smoking rate falls as vaping rises
Mexico’s ENCODAT 2025 finds smoking rate falls as vaping rises
Results from Mexico’s ENCODAT 2025 indicate a structural shift in tobacco and nicotine use: past-month combustible tobacco use among the general population (ages 12–65) declined to 15.1%, down from 17.6% in 2016, while past-month e-cigarette use increased to 2.6%, up from 1.1%.
Dec.25 by 2FIRSTS.ai
Thai Health Authorities: Nicotine Pouches Classified as Tobacco; Sales Must Comply with 2017 Act
Thai Health Authorities: Nicotine Pouches Classified as Tobacco; Sales Must Comply with 2017 Act
Thailand’s Disease Control Department has warned that nicotine pouches (“Snus”) are classified as tobacco products and must comply with the Tobacco Products Control Act B.E. 2560 (2017). Officials said they have received complaints about sales and promotional activities, and stressed that these products must not be displayed or promoted at points of sale.
Feb.02 by 2FIRSTS.ai
BAT CEO: to ramp up ‘next-generation’ tobacco capacity in Italy, plans €500 mln investment in Trieste plant by 2027
BAT CEO: to ramp up ‘next-generation’ tobacco capacity in Italy, plans €500 mln investment in Trieste plant by 2027
British American Tobacco (BAT) CEO Tadeu Marroco said the group will continue to invest in equipment and technology in Italy and expand capacity for next-generation tobacco products such as e-cigarettes and heated tobacco. BAT’s Trieste innovation hub is slated to receive a total investment of 500 million euros by 2027 and add 16 new production lines.
Feb.03 by 2FIRSTS.ai
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
IQOS Partners with Mexico’s Zamna Festival; PMI Says Adult User Base Tops 140,000
Philip Morris International (PMI) said IQOS, via its “IQOS Curious X” platform, has entered a global partnership with the Zamna music festival in Tulum, Mexico, with the collaboration making its on-site debut during Zamna 2026 and targeting adult nicotine users. PMI said IQOS has more than 34 million users worldwide, while the number of adult consumers in Mexico has surpassed 140,000.
Jan.15 by 2FIRSTS.ai