The Ministry Of Finance Ensures That The Increase In Cigarette Excise Has Not Been Implemented In 2025

JAKARTA - The Ministry of Finance (Kemenkeu) has ensured that the adjustment of tobacco excise tariffs (CHT) will not be implemented in 2025.

"Until the closing of the discussion on the 2025 State Revenue and Expenditure Budget Draft (RAPBN) which was set by the DPR last week, the government's position for the CHT policy in 2025 will not be implemented," said Director General of Customs and Excise at the Ministry of Finance Askolani during a press conference at the KiTa State Budget. Edition September 2024 in Jakarta, quoted from Antara, Monday, September 23.

According to him, the government will still look at other alternative policies by making price adjustments at the industrial level.

A number of evaluations will also be carried out, including the relatively high difference in class I, II and III cigarettes and causing "downtrading".

"The direction of the 2025 CHT will be reviewed by the government to ensure the policies to be established," he explained.

The realization of excise revenues was recorded at IDR 138.4 trillion as of August 31, 2024, growing 5.0 percent year-on-year (yoy).

The growth in excise revenues was driven by an increase in class II and III production which pushed the increase in CHT by 4.7 percent yoy to IDR 132.8 trillion.

Meanwhile, the revenue of excise drinks containing ethyl alcohol (MMEA) was recorded at IDR 5.4 trillion or grew 11.9 percent (yoy) driven by an increase in domestic MMEA tariffs and production.

Meanwhile, the Ethyl Alcohol (EA) excise was recorded at IDR 93.6 billion, or grew 21.8 percent in line with the increase in production.

With this performance, excise revenues also boosted the realization of customs and excise revenues, which cumulatively recorded Rp183.2 trillion, or grew by 6.8 percent yoy.

Revenue of Import Duty was recorded at IDR 33.9 trillion or grew 3.1 percent yoy due to the increase in the value of imports and the strengthening of the US dollar exchange rate against rupiah.

On the other hand, the realization of Import Duty was Rp. 10.9 trillion or grew 59.3 percent yoy, which was influenced by the growth of copper Exit Customs of 567.8 percent yoy with a share of 77.1 percent.

Meanwhile, Palm Product Exit Customs fell 57.3 percent yoy due to a decrease in the average crude palm oil (CPO) price in 2024 and a decrease in export volume of palm oil products.