Government will officially increase Tobacco Products Excise Rates ("Cukai Hasil Tembakau" or CHT) rate for cigarettes by 10 percent in 2023 and 2024.
This was conveyed directly by Sri Mulyani as the Minister of Finance, following a limited meeting with President Joko Widodo on (03/11), whose statement was broadcast via the Presidential Secretariat's YouTube channel.
According to Sri Mulyani, the increase in CHT rates for machine-rolled kretek cigarettes ("Sigaret Kretek Mesin" or SKM), machine-made white cigarettes (“Sigaret Putih Mesin” or SPM), and food kretek cigarettes (“Sigaret Kretek Pangan” or SKP) would vary by group. "An average of 10 percent will later be shown by average increases 11.5 to 11.75 percent in SKM I and II; 12 to 11 percent in SPM I and SPM II; and by 5 percent in SKP I, II and III," she said.
Excise rate increases apply not only to CHT, but also to electronic cigarettes and the manufacture of other tobacco processing products. Furthermore, excise rate increase for electronic cigarettes will rise annually for the next five years.
"It was also decided today to raise excise on electronic cigarettes by an average of 15% for electric cigarettes and 6% for other tobacco processing products. This is applicable for the next five years, with an annual increase of 15%”, she continued.
