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

HB 5437 “Vape Safety Act” advances in House committee, proposing statewide licensing for vape shops
HB 5437 “Vape Safety Act” advances in House committee, proposing statewide licensing for vape shops
A committee substitute for House Bill 5437, the Vape Safety Act sponsored by Del. David McCormick (David McCormick), was recommended Monday afternoon by the House Health and Human Resources Committee to the full House, with the bill next heading to the House Judiciary Committee. HB 5437 would require specialty shops selling tobacco, tobacco-derived products, alternative nicotine, or vapor products and accessories to obtain a state license from the Alcohol Beverage Control Administration (ABCA)
Feb.26 by 2FIRSTS.ai
Heated tobacco brand DIITO launches in Mongolia
Heated tobacco brand DIITO launches in Mongolia
A new heat-not-burn (HNB) brand, DIITO, has commenced promotional activities in the Mongolian market. The device features an integrated display panel and supports dual heating modes, "RELAX" and "RUSH." Investigations reveal that DIITO’s local promotion closely overlaps with RELX’s official distribution channels. Furthermore, the DIITO trademark is held by the UK-based REAZEN TECH LIMITED, a company that also manages the e-cigarette brand FASTA.
Jan.16 by 2FIRSTS.ai
Virginia appeals to the Fourth Circuit over partial block on flavored vape ban enforcement
Virginia appeals to the Fourth Circuit over partial block on flavored vape ban enforcement
Virginia has asked the Fourth Circuit to overturn a district court order that partially blocked enforcement of the commonwealth’s flavored vape ban. In a notice, the state told U.S. District Judge David J. Novak it seeks to upend his December ruling that Virginia’s Chapter 23.2 statute is preempted by the Food, Drug and Cosmetic Act and the Family Smoking Prevention and Tobacco Control Act.
Jan.12 by 2FIRSTS.ai
Denver’s Flavored Tobacco Ban Faces Constitutional Challenge From Vape Trade Group
Denver’s Flavored Tobacco Ban Faces Constitutional Challenge From Vape Trade Group
A Colorado vape industry trade group says Denver’s voter-approved flavored tobacco sales ban is unconstitutional and too vague to enforce. The group is asking a state court for a permanent injunction blocking enforcement of Ordinance 24-1765 and for a declaration allowing flavored tobacco and vape sales, citing state constitutional vagueness concerns and multiple U.S. constitutional issues.
Jan.27 by 2FIRSTS.ai
Florida HB 389 seeks statewide ban on smoking and vaping in public places and indoor workplaces
Florida HB 389 seeks statewide ban on smoking and vaping in public places and indoor workplaces
Florida lawmakers have introduced HB 389, a proposal to expand smoke-free protections by banning smoking and vaping in public places and enclosed indoor workplaces across the state. The bill broadens statutory definitions and outlines limited exceptions and compliance rules, with an effective date of July 1, 2026 if enacted.
Feb.10 by 2FIRSTS.ai
Australia: NSW police and ABF seize illicit tobacco and vapes worth over A$1.6 million in Sydney’s southwest
Australia: NSW police and ABF seize illicit tobacco and vapes worth over A$1.6 million in Sydney’s southwest
In Australia’s New South Wales, a joint operation in Sydney’s southwest led to the seizure of illicit tobacco and vape products valued at over A$1.6 million (about US$1.09 million) from a warehouse in Riverwood.
Jan.22 by 2FIRSTS.ai