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

Thai Police Seize 30,000 Illegal Vapes Worth Over US$270,000
Thai Police Seize 30,000 Illegal Vapes Worth Over US$270,000
According to Thai police, officers seized 30,000 illegal vapes worth over THB 10 million (US$270,000) and arrested two suspects linked to online sales via LINE account “VST Nuan Chan.” Raids were conducted in Bangkok and Samut Prakan, uncovering a main warehouse and residence. Both suspects confessed and face charges under the Product Safety Act and Customs Law for illegal import and sale.
Oct.30 by 2FIRSTS.ai
BAT Korea Launches Year-End Promotion for “glo hyper” as Demand for Odorless Heated Tobacco Rises
BAT Korea Launches Year-End Promotion for “glo hyper” as Demand for Odorless Heated Tobacco Rises
BAT Rothmans has announced a year-end promotion for its “glo hyper” heated tobacco series in response to growing consumer demand for odorless devices during the cold season. As indoor activity rises, more smokers are shifting to heated tobacco products that produce less smell and ash. Government data show HNB sales grew 8.3% last year, accounting for 18.4% of the tobacco market.
Nov.12 by 2FIRSTS.ai
Portugal to Tax Nicotine Pouches from 2026 at €0.065 per Gram
Portugal to Tax Nicotine Pouches from 2026 at €0.065 per Gram
Portugal’s 2026 State Budget adds nicotine pouches to the IEC by inserting Article 104-D into the Excise Code’s tobacco chapter. A specific duty of €0.065/g applies from 2026, with rounding to whole grams. The Budget also defines pouches (natural nicotine, up to 12 mg, tobacco-free, oral mucosal absorption). Lusa projects €1.676B in tobacco excise for 2026; combined levies near €1.993B.
Oct.30 by 2FIRSTS.ai
France plans to impose new taxes on e-liquids, with the vape industry association warning of unemployment risk
France plans to impose new taxes on e-liquids, with the vape industry association warning of unemployment risk
French government proposes tax on e-liquid, sparking concerns over job losses and increased smuggling and underage sales risks.
Oct.16 by 2FIRSTS.ai
Product | Featuring an ultra-thin metal body and a “Champagne Gold” design, Sikary launches the Sikary Fit in the Middle East
Product | Featuring an ultra-thin metal body and a “Champagne Gold” design, Sikary launches the Sikary Fit in the Middle East
Sikary has listed its new disposable “Fit” on the official site and UAE channels. The device features a 13 mm metal body with a 12 mL e-liquid chamber and is advertised for up to 12,000 puffs, priced at around AED 35 per unit.
Oct.28 by 2FIRSTS.ai
U.S. FDA Includes Cytisinicline for Vaping Addiction in National Priority Voucher Program, Shortens Review to 1–2 Months
U.S. FDA Includes Cytisinicline for Vaping Addiction in National Priority Voucher Program, Shortens Review to 1–2 Months
The U.S. Food and Drug Administration (FDA) has added Cytisinicline, a plant-based therapy developed by Achieve Life Sciences for nicotine vaping addiction, to its new National Priority Voucher (CNPV) program. The initiative shortens drug review timelines from 10–12 months to just 1–2 months, expediting approval for treatments that address major public health needs.
Oct.20 by 2FIRSTS.ai