• July 12, 2024

Indonesia: Tax Collections Fall Short

 Indonesia: Tax Collections Fall Short
Photo: Taco Tuinstra

Indonesia had collected only half of the targeted tobacco taxes by the end of August, reports Tempo, citing the country’s Directorate General of Customs and Excise.

According to the directorate’s director of communication, Nirwala Dwi Heryanto, the state’s income from tobacco excise reached only IDR126.8 trillion ($14.76 billion) by the end of last month—far short of the IDR232.5 billion anticipated in the 2023 state budget.

Based on the collections to date, Heryanto expected Indonesia’s tobacco tax collections to reach 93.98 percent of its target by the end of 2023.

Heryanto attributed the shortfall to downtrading, a shift from combustible cigarettes to vapor products and illegal distribution of cigarettes.

To reach its target, Customs and Excise is stepping up enforcement and improving its technology and information service, Heryanto said.