Indonesia reviews new tobacco excise tax layer, minister says

Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has confirmed that a proposal to introduce an additional tier to the tobacco excise tax (CHT) is currently under careful consideration and discussion with the House of Representatives (DPR RI). The minister indicated that the precise tax rates remain undisclosed pending formal deliberations with the legislative body.

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The rates cannot be announced yet because we still need to discuss them with the DPR. There hasn't been an official discussion, but we have spoken and will request time for discussion.

"The rates cannot be announced yet because we still need to discuss them with the DPR. There hasn't been an official discussion, but we have spoken and will request time for discussion," Purbaya stated on Friday in Tangerang. He added that the Ministry of Finance has finalized its proposal for the new tobacco excise tax layer, awaiting a schedule for official talks.

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It's not final, still being discussed. Not in the APBN calculation. If there is upside potential.

Regarding the implementation of excise taxes on sweetened beverages (MBDK), which had previously been postponed, the Ministry of Finance clarified that the policy is not yet final and has not been incorporated into the main state budget calculations. "It's not final, still being discussed. Not in the APBN calculation. If there is upside potential," he said.

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So indeed, we are increasing the operational costs of Customs and Excise so that they can actively catch more smuggling and other business cheating in Indonesia.

Furthermore, Purbaya addressed the issue of rampant illegal imports, announcing an increase in the operational budget for customs and excise authorities to combat smuggling. He claimed significant improvements in the performance of the Directorate General of Customs and Excise, evidenced by increased state revenue and a drastic reduction in the circulation of illegal cigarettes. "These results show significant performance improvements from Customs and Excise, both in seizures and in revenue which has started to grow. Dark cigarettes have also decreased significantly," he asserted.

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These results show significant performance improvements from Customs and Excise, both in seizures and in revenue which has started to grow. Dark cigarettes have also decreased significantly.