Cigarette excise to go up 10% by Jan 1

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Cigarette
(Ilustration Cigarette)

Jakarta, IO – The government has officially decided to increase cigarette excise tax by 10 percent beginning from January 1, 2023. It will take effect for the next two years, reported Kompas, Monday (19/12).

The policy is stipulated in Finance Minister Regulation 191/PMK.010/2022 which amended Regulation 192/PMK.010/2021 on excise taxes for tobacco products in the form of cigarettes, cigars, klobot (leaf cigarettes) and tobacco slices.

The regulation was signed by Finance Minister Sri Mulyani on December 14, 2022 and promulgated on December 15, 2022.

The regulation draft has been consulted with the parliament and take the view of tobacco farmers into account.

Read: Excise tax on plastic and sugary drinks to be officially implemented in 2023

The decision was taken in consideration of a number of aspects including the economy, employment, sustainability of the cigarette industry and control of illegal cigarettes distribution.

More importantly, it aims at reducing tobacco use among children and teens. (un)