As of 2022 Indonesian government prepared a surprise for all cigarette lovers. This is because the official price of cigarettes has increased due to the increase in excise on tobacco products. The increase in CHT refers to the Minister of Finance Regulation (PMK) Number 192/PMK.010/21. Concerning Excise Tariffs for Tobacco Products in the Form of Cigarettes, Cigars, Leaf Cigarettes or Klobot, and Tobacco Slices. As a result, a 12% increase in cigarette prices is unavoidable.
Finance Minister Sri Mulyani said the average cigarette excise increase was 12 percent. Quoted from Kemenkeu.go.id; Sri Mulyani explained that for Hand-Rolled Kretek Cigarettes (SKT)—the President only asked for a 5 percent increase, so we set a maximum 4.5 percent.
The imposition of excise on tobacco products is intended as an effort to control consumption. While still considering the impact on tobacco farmers, workers, and the tobacco product industry as a whole.
“The increase does not only consider health issues; but also pays attention to the protection of workers, farmers and the cigarette industry,” Sri Mulyani explained.
This regulation is starts to be implement December 17, 2021. Replacing the Minister of Finance previous regulation numbered 198/PMK.010/2020; concerning Excise Tariffs for Tobacco related products. Cigarettes are one of the commodities that have many enthusiasts. Cigarette connoisseurs come from various circles and social strata. As a commodity that has many enthusiasts, the implementation of the Tobacco Excise which results in an increase in cigarette prices certainly raises a lot of complaints, especially the people with less income.