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

Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
PMFTC, the Philippine affiliate of Philip Morris International (PMI), opened an IQOS flagship boutique on December 19 in the Ayala business district of Makati City, the Philippines. Positioned as a multi-sensory, immersive retail space, the store is designed for legal-aged nicotine users. It features the Philippines’ first IQOS Scent Experience zone and also showcases the upcoming IQOS x ISABEL collaboration.
Dec.29 by 2FIRSTS.ai
2Firsts Outlines 2026 Global Product Trends in the New Tobacco Industry
2Firsts Outlines 2026 Global Product Trends in the New Tobacco Industry
As regulation tightens and innovation matures, competition in the new tobacco industry is shifting. In its 2026 Global Product Trends in the New Tobacco Industry report, 2Firsts examines how heated tobacco, nicotine pouches, and vape products are moving beyond feature-driven upgrades toward system-level design, where experience management, compliance structure, and engineering capability increasingly shape long-term competition.
Jan.13 by 2Firsts Perspectives
Alan Zhao: China’s High-Level Crackdown on Illicit Tobacco and Vaping Will Reshape the Global Market
Alan Zhao: China’s High-Level Crackdown on Illicit Tobacco and Vaping Will Reshape the Global Market
Alan Zhao wrote an article interpreting China's highest-level law enforcement action against illegal tobacco and e-cigarettes. He believes that this is not only an upgrade of domestic governance but will also have a profound impact on the global new tobacco supply chain and market pattern.
Dec.19 by 2Firsts Perspectives
Kyrgyzstan: Jogorku Kenesh committee sends draft vape ban bills back for revisions
Kyrgyzstan: Jogorku Kenesh committee sends draft vape ban bills back for revisions
Kyrgyzstan Jogorku Kenesh committee on labor, health, women’s affairs and social issues decided to withdraw for revision two draft laws related to banning electronic nicotine delivery systems and e-cigarettes in Kyrgyzstan.
Jan.14 by 2FIRSTS.ai
BAT plans to sell its stake in ITC Hotels, using proceeds to reduce debt
BAT plans to sell its stake in ITC Hotels, using proceeds to reduce debt
British American Tobacco (BAT) plans to sell all or part of its stake in ITC Hotels via an accelerated bookbuild, with the sale size expected to be up to 15.3% of the company’s shares. The company says the proceeds will be used to reduce debt and bring its leverage back within the target range.
Dec.05 by 2FIRSTS.ai
China Announces Crackdown on Illegal Nicotine Pouch Manufacturing Involving Counterfeit VELO, ZYN, and PABLO Products
China Announces Crackdown on Illegal Nicotine Pouch Manufacturing Involving Counterfeit VELO, ZYN, and PABLO Products
The case is valued at approximately 400,000 yuan, and two suspects have been taken into custody.Video footage released by authorities shows that the counterfeit products involved well-known market brands such as VELO, ZYN, and PABLO.
Dec.01