BANDAR LAMPUNG, RADARLAMPUNG.CO.ID - The official tobacco excise tax will increase by 10 percent and for electric cigarettes by 15 percent in 2023. This policy is followed by an increase in the retail price of cigarettes in Indonesia.
The increase in excise duty for the two products will apply for the next two years or multiple years.
Meanwhile, the excise tariff for other tobacco processing products (HPTL) was increased by six percent, which will be valid for five years, from 2023 to 2027.
The government itself officially increased the retail price of cigarettes, which took effect on January 1, 2023.
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The increase in cigarette excise duty was carried out by the government in order to control consumption by the public and the production of cigarettes themselves.
The Minister of Finance (Menkeu), Sri Mulyani Indrawati, stated that the increase in excise rates could reduce the affordability of Indonesian cigarettes.
"In previous years, we increased the cigarette excise, which caused cigarette prices to increase." "So that the affordability of cigarettes will also decrease," said Sri Mulyani.
With this policy implemented, it is expected that cigarette consumption will decrease.
In determining the increase in tobacco excise, the government is involved in preparing excise instruments by considering a number of aspects.
Among others, agricultural workers and cigarette industry participants.
The government is also paying attention to the target of reducing the prevalence of smokers among children aged 10–18 years to 8.7 percent.
This is stated in the National Medium-Term Development Plan (RPJMN) for the 2020–2024 period.
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