According to a report by Indonesian media viva on December 18, the Indonesian Ministry of Finance’s Taxation Department (Direktorat Jenderal Bea dan Cukai, referred to as DJBC) confirmed that the tobacco tax (Cukai Hasil Tembakau, referred to as CHT) will be increased by 10% in 2024, while electronic Cigarette tax will increase by 15%. The determination of this increase is based on the consideration of four pillars.
This arrangement has been clearly stipulated in the Ministry of Finance Regulation (Peraturan Menteri Keuangan, referred to as PMK) No. 191 of 2022. This regulation mainly covers the use of cigarettes, cigars, cigarettes, hand tobacco and cut tobacco (Tembakau Iris, referred to as TIS). Tobacco tax rates.
Previously, Askolani, director of the Taxation Department of the Indonesian Ministry of Finance, also stated that they have prepared approximately 17 million cigarette tax stamps for January 2024. This is consistent with their strategy to increase tobacco tax rates in 2024.