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

Nebraska weighs child-safety lock requirement for vapes sold in the state
Nebraska weighs child-safety lock requirement for vapes sold in the state
Nebraska lawmakers heard testimony on LB1254, which would require electronic smoking devices sold in the state to include built-in child safety features. Violations would be a Class IV misdemeanor carrying a fine of up to $500. Supporters argued young children can easily activate unprotected devices by inhaling, risking exposure to nicotine and other toxic chemicals, and said safeguards should mirror child-resistant measures used for medications and other household products.
Feb.28 by 2FIRSTS.ai
Malaysia’s Kuching court fines vape retailer USD 4921 over “BEST VALUE FOR MONEY” poster promotion
Malaysia’s Kuching court fines vape retailer USD 4921 over “BEST VALUE FOR MONEY” poster promotion
A vape retail company in Kuching, Malaysia, was fined RM20,000 (about USD 4,921.86) by the Magistrates’ Court on January 19, 2026, after pleading guilty to an offence under Section 9(1) of the Control of Smoking Products for Public Health Act 2024 (Act 852). The case concerned a poster displayed at the company’s premises on October 6, 2025, carrying the slogan “BEST VALUE FOR MONEY.”
Jan.21 by 2FIRSTS.ai
Scandinavian Tobacco Group releases 2025 results: tariffs and weaker demand weigh on performance, revenue about $1.4 billion
Scandinavian Tobacco Group releases 2025 results: tariffs and weaker demand weigh on performance, revenue about $1.4 billion
Scandinavian Tobacco Group (STG) reported its 2025 results: revenue was 9.036 billion Danish kroner (about $1.407 billion); EBITDA before special items was 1.791 billion Danish kroner (about $278 million); and free cash flow before acquisitions was 595 million Danish kroner (about $92.7 million). Multiple metrics declined year over year, and the company did not meet its Q3-updated guidance for revenue and free cash flow.
Mar.05 by 2FIRSTS.ai
Ireland’s 2026 amendment bill to regulate nicotine pouches and tighten rules on vaping products
Ireland’s 2026 amendment bill to regulate nicotine pouches and tighten rules on vaping products
The Irish government has approved the publication of the Public Health (Tobacco Products and Nicotine Inhaling Products) (Amendment) Bill 2026. The bill would ban the sale of nicotine consumption products such as nicotine pouches to those under 18 and further regulate nicotine vaping products.
Mar.05 by 2FIRSTS.ai
SICPA Secures Five-Year UK Vape Tax Stamp Contract
SICPA Secures Five-Year UK Vape Tax Stamp Contract
HM Revenue and Customs (HMRC) has awarded a five-year contract to Swiss technology company SICPA and Cartor Security Printers to implement the United Kingdom’s new vaping duty stamp and track-and-trace system, beginning in April 2026.
Market
Feb.24
The Volume Illusion: Measuring the Future of Nicotine with the Tools of the Past
The Volume Illusion: Measuring the Future of Nicotine with the Tools of the Past
As next-generation nicotine products become economically central rather than marginal, traditional volume-based metrics are increasingly unable to explain consumption, risk, and value. Units designed for a cigarette-based economy struggle to describe systems defined by delivery speed, pharmacokinetics, and adaptive user behavior. Drawing on financial reporting, regulation, and nicotine science, a fundamental question: can the future of nicotine still be measured using the tools of its past?
Feb.09 by Alan Zhao | 2Firsts Perspectives