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

Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
South Korea’s New Vape Rules Raise Bar for E-Liquid Makers and China-Linked Supply Chains, Expert Says
South Korea’s New Vape Rules Raise Bar for E-Liquid Makers and China-Linked Supply Chains, Expert Says
South Korea’s new vape regulations are reshaping the e-liquid market, raising compliance requirements for manufacturers, retailers and overseas suppliers. In an interview with 2Firsts, Korean nicotine products specialist Sam Kim discusses licensing barriers, inventory impacts, China-linked supply chains, and emerging regulatory challenges around nicotine analogues, nicotine-free products and DIY mixing. The Korean case may offer broader insights as governments worldwide adapt to rapidly evolving nicotine products.
Jul.16
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
UK Vape Tax Countdown: Retailer Vape HQ Estimates 100ml E-liquid Prices Could Rise From £12.99 to £39.39, While Pod Kits Increase Less Than 10%
UK Vape Tax Countdown: Retailer Vape HQ Estimates 100ml E-liquid Prices Could Rise From £12.99 to £39.39, While Pod Kits Increase Less Than 10%
The UK’s Vaping Products Duty (VPD), scheduled to take effect in October 2026, is prompting retailers to assess how different vape categories may be affected. UK retailer Vape HQ has estimated potential price changes under the new volume-based tax system, showing that 100ml shortfill e-liquids could see prices rise from around £12.99 to £39.39, a 203% increase, while 2ml prefilled pod vape kits could rise from £5.99 to £6.52, an increase of about 9%. The estimates highlight how a volume-based tax structure creates uneven cost impacts across product categories.
Aug.19
Product | JNR Launches Shisha Hookah 70K E-Hookah With 60ml E-Liquid and 0.6% Nicotine
Product | JNR Launches Shisha Hookah 70K E-Hookah With 60ml E-Liquid and 0.6% Nicotine
JNR has introduced the Shisha Hookah 70K, a high-capacity rechargeable disposable vape designed around a hookah-inspired experience. The device comes prefilled with 60ml of e-liquid at 6mg/ml (0.6%) nicotine strength, alongside a 1,000mAh rechargeable battery and a 0.38Ω single mesh coil. It also features adjustable airflow and battery and e-liquid level displays. JNR claims the device can deliver up to 70,000 puffs and offers more than 20 flavors. Retail listings for the product have appeared in markets including Tunisia.
Market
Aug.24 by 2Firsts Perspectives
BofA Upgrades Imperial Brands, Says Market Overreacted to Australia Slump
BofA Upgrades Imperial Brands, Says Market Overreacted to Australia Slump
Bank of America upgraded Imperial Brands to “buy” from “neutral,” saying investors have overreacted to the tobacco group’s Australian business downturn and that the share-price pullback has created a more attractive entry point.
Jul.16