Indonesia Falls Short on Tobacco Tax Revenue Target

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Indonesia Falls Short on Tobacco Tax Revenue Target
Indonesia's tobacco tax revenue falls short, collecting only half of the target amount by the end of August.

According to a report from TEMPO on September 15th, citing data from the Indonesian Customs and Excise Authority, Indonesia collected only half of the targeted tobacco tax amount by the end of August.


As of the end of last month, tobacco consumption revenue in the country reached only IDR 126.8 trillion ($14.76 billion), far below the national budget expectation of IDR 232.5 trillion by 2023. Based on the current taxation situation, it is estimated that Indonesia's tobacco tax collection will only reach 93.98% of the target by the end of 2023.


The Director of Promotion and Publication at the General Administration of Customs attributed this shortage to a decrease in trading prices, a shift from combustible cigarettes to e-cigarette products, and illegal distribution of cigarettes. He stated that in order to achieve this goal, the Customs is stepping up enforcement efforts and improving its technological and information services.


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