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Indonesian Cigarettes to Cost More in 2018

Tax on Cigarettes to Increase More than 10% Effective January 1, 2018


Bali News: Indonesia, cigarettes, excise tax, kretek
Click Image to Enlarge

(11/3/2017)

The Indonesian government has announced a 10.04% increase in tobacco tax to be introduced in 2018.
 
Beritabali.com reports that the Director-General of Customs and Excise for the Ministry of Finance says the steep increase in tax on tobacco products is intended to curb consumption as well as increase revenues derived from the Nation’s large tobacco industry sector.
 
The higher tax levels will take effect from January 1, 2018. The tax imposed on the popular manufactured “kretek” cigarettes containing cloves will increase 10.9% and on manufactured white cigarettes 13.5%.
 
The cigarette industry is a major employer in the industrial sector. “Kretek” cigarettes produced by hand will increase only 7.3% in order to have a lessened impact on the section of the industry employing the largest number of workers.
 
Reflecting ongoing efforts to reduce cigarette consumption, overall consumption of tobacco products decreased 1.8% in 2016 and is projected to decrease a further 2.8% in 2017. With the introduction of higher taxes, officials predict tobacco production will decline 2.2% in 2018. 

Special attention is being paid also on reducing the prevalence of smoking by Indonesian children under the age of 15.


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