Very expensive cigarettes! Excise deposits down to IDR 111.2 trillion

Jakarta, Klinik Farma – Finance Minister Shri Mulyani Indrawati revealed that tobacco excise (CHT) deposits have decreased this year as of July 2023. CHT deposits were recorded at IDR 111.23 trillion, down 8.93% (year-on-year) as of July 2023.

“The 8.54% decrease was mainly due to CHT products from the first group,” Shri Mulyani said at the Our State Budget press conference in August 2023.

According to Shri Mulyani’s reports, cumulative production through May fell 3.69%, while the weighted average tariff increased only 2.02% from an estimated 10% due to the decline in class 1 SKM and SPM (high tariffs).

At the end of November last year, the government decided to raise the tobacco excise duty (CNT) rate on cigarettes by 10% in 2023 and 2024.

Shri Mulyani said at the time that the increase in CHT rates for machine-rolled kretek (SKM), machine-made white cigarettes (SPM) and food-grade kretek (SKP) cigarettes would differ by class.

“On average 10 percent later, SKM I and II will be shown, which will later increase on average from 11.5 to 11.75 (percent), SPM I and SPM II will increase by 12-11 percent, while SKP I, II and III will grow. 5 percent,” he said.

The tariff increase applies not only to CHT, but also to e-cigarettes and other processed tobacco products (HPTL). For electric cigarettes, the increase in excise rates will continue every year for the next five years, Sri Mulyani said.

“Today, a decision was also made to increase the excise tax on electronic cigarettes, namely by an average of 15 percent for electronic cigarettes and 6 percent for HTPL. This applies, every year it will increase by 15 percent over the next 5 years,” said He. .

[Gambas:Video CNBC]