Indonesia Raises Tobacco and E-cigarette Taxes in 2023

Starting from January 1, 2023, the Indonesian government has officially increased the consumption tax on tobacco cigarettes and electronic cigarettes.

The price of traditional tobacco cigarettes has increased by 10%, while the price of e-cigarettes has increased by 15%, leading to a surge in community retail prices for cigarettes.

According to the Finance Minister Sri Mulyani, there are several objectives behind raising the cigarette consumption tax.

One of the goals is to protect children from smoking and to control the consumption of tobacco products.

Here is a list of retail cigarette prices as of January 1st, 2023.

Mechanism Lavender cigarettes (SKM)

Each unit of group I costs a minimum of 2,055 Indonesian rupiah (approximately 0.9 Chinese yuan).

Group II is priced at a minimum of 1,255 Indonesian rupiah (approximately 0.55 yuan in Chinese currency).

2. SPM Cigarettes

The I group is willing to pay a minimum of 2,165 Indonesian rupiahs (approximately 0.95 Chinese yuan) per unit.

Each member of Group II costs at least 1,295 Indonesian rupiah (approximately 0.57 yuan).

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For the first group, the lowest amount is between 1,250-1,800 Indonesian rupiahs per piece (approximately 0.55-0.79 RMB).

Group II costs at least 720 Indonesian rupiahs (approximately 0.32 RMB).

The lowest value for Group III is IDR 605 (approximately RMB 0.27).

Hand-rolled filtered clove cigarettes (SKTF) or hand-rolled filtered white cigarettes (SPTF).

The minimum selling price is 2,055 Indonesian rupiahs per unit (equivalent to approximately 0.9 yuan in Chinese currency).

5. Kam Lan Mixture (KLM) Cigarettes with Frankincense and Rhubarb.

The lowest price in the first group is 860 Indonesian rupiah (approximately 0.38 yuan in Chinese currency).

Group II has a minimum of 200 Indonesian rupiah (approximately 0.09 yuan) per unit.

TIS stands for Tobacco Ingredients and Substances, which refers to the various components and additives used in the production of cigarettes.

The minimum selling price is IDR 55-180.

The types of cigarettes known as "leaf-shaped" or Klobot (KLB)

The minimum selling price is 290 Indonesian Rupiah.

8. Cathode Ray Tube (CRT)

The minimum selling price ranges from 495 to 5,500 Indonesian rupiah (approximately 0.22-2.43 yuan in Chinese currency).