Indonesia to Keep Current Tax Rates

Indonesia will maintain excise tax rates for tobacco products at their current levels next year, reports The Star.

According to a finance ministry official, the country will consider other policies, including changes in retail prices, to discourage smoking.

“We won’t adjust the rates next year, but we will look for other alternative policies, including adjustment in retail prices,” said Askolani, director general of customs and excise at the finance ministry.

Indonesia raised excise tax rates for tobacco products by an average of 10% each year in 2023 and 2024 in an effort to control cigarette consumption.

According to a health ministry survey in 2023, Indonesia had 70 million smokers among its 280 million people. It said 7.8 percent of smokers were between the ages of 10 to 18.