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

BAT Expects Around 2% Revenue and Operating Profit Growth in FY25
BAT Expects Around 2% Revenue and Operating Profit Growth in FY25
British American Tobacco (BAT) reaffirmed its 2026 guidance while announcing a £1.3 billion (approximately USD 1.65 billion) share buyback for FY26. The company expects around 2% growth in revenue and adjusted profit from operations for FY25. Accelerating New Category growth, driven by Velo Plus and improving U.S. Vuse performance, is expected to deliver double-digit H2 revenue growth.
Dec.09 by 2FIRSTS.ai
Product | ELFBAR launches new “4-in-1” e-cigarette kit: 4× (1ml + 5ml) design, 4 flavors per set
Product | ELFBAR launches new “4-in-1” e-cigarette kit: 4× (1ml + 5ml) design, 4 flavors per set
ELFBAR has launched the “4 in 1 Ultra 50 VAPE KIT” through multiple online sales channels in the UK. The kit combines four 1ml prefilled pods with four 5ml refill containers. The company claims it can deliver up to around 50,000 puffs, with a retail price of approximately £13.99.
Dec.31 by 2FIRSTS.ai
British Museum Ends Long-Running Sponsorship with Japan Tobacco International
British Museum Ends Long-Running Sponsorship with Japan Tobacco International
According to The Guardian, the British Museum has ended its 15-year sponsorship with Japan Tobacco International after government inquiries into whether the deal breached WHO tobacco-control rules. Critics had long opposed the partnership, while the museum said sponsorship remains essential for its financial stability and public access.
Nov.20
KT&G Unveils lil hybrid 3.0 Misty Rose Limited Edition, Limited to 20,000 Devices
KT&G Unveils lil hybrid 3.0 Misty Rose Limited Edition, Limited to 20,000 Devices
KT&G has launched the limited-edition “lil hybrid 3.0 Misty Rose Edition” heated tobacco device in South Korea, betting on year-end consumer demand with a gradient rose-colored design. The release is capped at 20,000 units and is available through both online and offline channels, with an official retail price of 78,000 won (approximately USD 53).
Nov.20 by 2FIRSTS.ai
Product | Airis, Kangvape and HAYATI Launch Christmas-Themed E-cigarettes in UK and US Online Markets
Product | Airis, Kangvape and HAYATI Launch Christmas-Themed E-cigarettes in UK and US Online Markets
As the Christmas holiday season approaches in Europe and North America, e-cigarette brands such as Airis, Kangvape and HAYATI have successively launched Christmas special editions featuring festive-themed designs and selected limited-time flavors, which are now available through online channels in both the United States and the United Kingdom.
Dec.15 by 2FIRSTS.ai
BAT Confirms Vuse Marketing Success in H2, Federal Crackdown Key Driver
BAT Confirms Vuse Marketing Success in H2, Federal Crackdown Key Driver
BAT confirms significant improvement in Vuse's performance, attributing it to federal crackdown on illegal competitors, creating a unique market opportunity.
Dec.09 by 2FIRSTS.ai