New VAT Tariff Levied on Tobacco Products

The Minister of Finance (“Minister”) has issued Ministerial Regulation No. 174/PMK.03/2015 on Procedures for Calculating and Collecting Valued-Added Tax for Tobacco Products (“2015 Regulation”). The 2015 Regulation aims to boost revenues derived from the tobacco industry through the imposition of higher value-added-tax tariffs (“VAT”).

Previously, the same matters were regulated under Ministerial Decree No. 62/KMK.03/2002 on Procedures for the Calculation, Collection, and Payment of Value-Added Tax for Tobacco Products (“2002 Regulation”).