Electrical Cigarettes Increasing Mahals, Excise Up 15 Percent Starting Next Year

UNSPLASH/E-Liquids UK ILLUSTRATION

Minister of Finance (Menkeu) Sri Mulyani announced an increase in the excise tax on e-cigarettes by 15 percent at the Bogor Palace, West Java in the middle of this week. In her statement, the Minister of Finance said that this stipulation would be effective from 2023.

"The increase in excise rates will continue every year for the next five years," he said after facing President Jokowi, quoted Friday, November 4.

Through this decision, it was found that the selling price of cigarettes would increase by 75 percent in the next half decade.

"So it will increase 15 percent every year for five consecutive years," he said.

This policy is expected to reduce the prevalence of early childhood smokers in accordance with the 2020-2024 National Medium-Term Development Plan (RPJMN).

The consumption of cigarettes is the second largest household consumption after rice. In fact, this consumption exceeds the consumption of protein such as eggs and chickens," he said.

In addition, the government also wants to control both consumption and cigarette production.

"We hope that the increase in cigarette excise tax can affect the decline in the affordability of cigarettes in the community," he said.

On this occasion, the state treasurer also conveyed a new tariff on tobacco excise (CHT) for cigarettes of 10 percent in 2023 and 2024.

He explained that the increase in CHT rates in the machine kretek cigarettes (SKM), machine white cigarettes (SPM), and food kretek cigarettes (SKP) would be different according to their group.