According to a report by Business Times on September 23, officials from the Indonesian Ministry of Finance have stated that Indonesia will not increase the tobacco consumption tax rate next year (2025), but will instead consider other policies to reduce smoking, including adjusting retail prices.
Director General of Customs and Excise of the Indonesian Ministry of Finance, Askolani, revealed that the tobacco product consumption tax rate for 2024 will be extended to 2025.
We will not be adjusting tax rates next year, but will seek other alternative policies, including adjusting retail prices.
He did not disclose when these policies would be implemented.
Indonesia has raised the consumption tax rate on tobacco products by an average of 10% in 2023 and 2024 to control cigarette consumption. According to a survey by the Indonesian Ministry of Health in 2023, out of a population of approximately 280 million, 70 million people are smokers, with 7.8% of them being in the 10 to 18 age group.
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