Indonesia Implements Tobacco Tax and Minimum Retail Price Regulations

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Indonesia’s government imposes new regulations on tobacco tax and minimum retail price to be implemented in 2024.

According to DDTC News on December 27, 2023, the Indonesian government has established the tobacco tax (CHT) for the year 2024 through Ministerial Decree No. 191 of the Ministry of Finance, along with the imposition of minimum retail prices (HJE).

According to Regulation No. 191, the tobacco tax policy in Indonesia needs to be revised and improved based on laws in the tobacco taxation field. The Customs and Tax Office is responsible for determining the new cigarette tax rates and minimum retail prices. Factors such as the type of tobacco products, the category of tobacco production companies, and the retail price per unit or gram should be taken into account when determining these rates, ensuring that they align with market demands and public interests.

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