Indonesia's "KOMPAS" reported on January 9 that although the government continues to increase cigarette taxes, there are still some places where cigarettes are sold illegally in Magelang City, Central Java Province, Indonesia. In these places, some illegal cigarettes use fake cigarette tax stamps.
The government has implemented upgraded cigarette tax rates since January 2024. According to Ministry of Finance Regulation No. 191 of 2022, the tobacco tax rate on traditional cigarettes has increased by an average of 10%, that of e-cigarettes has increased by an average of 15%, and that of other tobacco products. rose to 6%.
The policy has forced some smokers, such as 33-year-old Fajar Dharmawan, to rethink their spending. He said that due to the increase in tobacco taxes in 2021, he turned to e-cigarettes, which are relatively more economical.
Although this tax policy seems to quickly restrict user behavior, its goal is not only to control the health problems caused by cigarettes, but also to increase government revenue.
Indonesia's tobacco production value tax target reaches 230.4 trillion rupiah in 2023, accounting for 95% of the total tobacco tax revenue in 2023.
