Jumat, November 4, 2022

Government Set to Increase Excise Tariff on Cigarettes by 10% in 2023

The Minister of Finance, Sri Mulyani ("Minister"), has issued a statement affirming that the government is planning to increase the applicable excise rates for tobacco products (Cukai Hasil Tembakau – "CHT"), specifically cigarettes, by 10% for the 2023 and 2024 period. The president has also demanded an average increase in the excise rates for electric cigarettes of 15% and for other processed tobacco products (hasil pengolahan tembakau lainnya/HPTL) of 6%. Said rates will also be increased by 15% annually over the next five years.
While the average CHT excise rate increase has been determined at 10%, the Minister has stated that the abovementioned increase will be dependent on the relevant cigarette classifications. Said increased rates break down as follows: 1) Machine-rolled kretek cigarettes (Sigaret Kretek Mesin/SKM) I and II: between 11.50% and 11.75%; 2) Machine-rolled non-kretek cigarettes (Sigaret Putih Mesin/SPM) I and II: between 11.00% and 12.00%; and 3) Hand-rolled kretek cigarettes (Sigaret Kretek Tangan/SKT) or hand-rolled non-kretek cigarettes (Sigaret Putih Tangan/SPT) I – III: 5.00%.
According to the Minister, the above decision to increase excise rates is the result of several factors, including: 1) The current state of agricultural manpower and the cigarette industry; 2) Targets to decrease the number of underage smokers; and 3) Targets to decrease the overall rate of domestic cigarette consumption.
Ultimately, the Minister has affirmed that the increase in excise rates has been introduced in order to control cigarette consumption and production. In this regard, the Minister is hopeful that the increase would eventually have an impact and reduce the public’s access to cigarettes. _(ANT)

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*Syarat dan ketentuan berlaku

The Minister of Finance, Sri Mulyani ("Minister"), has issued a statement affirming that the government is planning to increase the applicable excise rates for tobacco products (Cukai Hasil Tembakau – "CHT"), specifically cigarettes, by 10% for the 2023 and 2024 period. The president has also demanded an average increase in the excise rates for electric cigarettes of 15% and for other processed tobacco products (hasil pengolahan tembakau lainnya/HPTL) of 6%. Said rates will also be increased by 15% annually over the next five years.
While the average CHT excise rate increase has been determined at 10%, the Minister has stated that the abovementioned increase will be dependent on the relevant cigarette classifications. Said increased rates break down as follows: 1) Machine-rolled kretek cigarettes (Sigaret Kretek Mesin/SKM) I and II: between 11.50% and 11.75%; 2) Machine-rolled non-kretek cigarettes (Sigaret Putih Mesin/SPM) I and II: between 11.00% and 12.00%; and 3) Hand-rolled kretek cigarettes (Sigaret Kretek Tangan/SKT) or hand-rolled non-kretek cigarettes (Sigaret Putih Tangan/SPT) I – III: 5.00%.
According to the Minister, the above decision to increase excise rates is the result of several factors, including: 1) The current state of agricultural manpower and the cigarette industry; 2) Targets to decrease the number of underage smokers; and 3) Targets to decrease the overall rate of domestic cigarette consumption.
Ultimately, the Minister has affirmed that the increase in excise rates has been introduced in order to control cigarette consumption and production. In this regard, the Minister is hopeful that the increase would eventually have an impact and reduce the public’s access to cigarettes. _(ANT)

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