Cigarette Excise Tax Increased by 10%, Here's the List of Retail Cigarette Prices for 2024

The Ministry of Finance (Kemenkeu) increased the average excise tax on tobacco products by 10% as of January 1, 2024. This excise increase has led to higher cigarette prices.

This policy is stipulated in Minister of Finance Regulation (PMK) Number 191 of 2022, which is the second amendment to PMK Number 192 of 2021. This PMK regulates excise tariffs for various types of tobacco products such as cigarettes, cigars, clove cigarettes, and cut tobacco. The excise tariff increase is effective from January 1, 2024, in accordance with Article 1 paragraph (2) letter b of the PMK.

Citing *Katadata*, Nirwala Dwi Heryanto, Director of Communication and User Guidance at Customs and Excise, stated that the excise tariff increase is the result of considering four pillars of tobacco policy: consumption control, industry sustainability, revenue targets, and the eradication of illegal cigarettes.

In addition, the government also imposed a 15% excise tax on electronic cigarettes starting January 1, 2024. This tax is regulated in Minister of Finance Regulation (PMK) Number 143/PMK/2023 concerning the Procedures for the Collection, Withholding, and Payment of Cigarette Taxes. This PMK refers to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (UU HKPD).

The following are the provisions for the minimum retail price (HJE) and excise tariff per cigarette or gram of domestically produced cigarettes effective January 1, 2024:

Machine-Made Clove Cigarettes (SKM)

* Group I: Excise increased by 11.8%; minimum retail price Rp2,260 per cigarette, previously Rp2,055 per cigarette.
* Group II: Excise increased by 11.5%; minimum retail price Rp1,380 per cigarette, previously Rp1,255 per cigarette.

Machine-Made White Cigarettes (SPM)

* Group I: Excise increased by 11.9%; minimum retail price Rp2,380/cigarette, up from Rp2,165/cigarette last year.
* Group II: Excise increased by 11.8%; minimum retail price Rp1,465/cigarette, up from Rp1,295/cigarette last year.

Hand-Rolled Clove Cigarettes (SKT)

* Group I: Excise increased by 4.7%; minimum retail price Rp1,375/cigarette to Rp1,980/cigarette, up from Rp1,250/cigarette to Rp1,800/cigarette last year.
* Group II: Excise increased by 4.2%; minimum retail price Rp865, up from Rp720 last year.
* Group III: Excise increased by 3.3%; minimum retail price Rp725, up from Rp605 last year.

Hand-Rolled Clove Cigarettes with Filter (SKTF) or Hand-Rolled White Cigarettes with Filter (SPTF)

* Excise increased by 11.8%; minimum retail price Rp2,260/cigarette, up from Rp2,055/cigarette last year.

Incense Cigarettes (KLM)

* Group I: Excise increased by 4.7%; minimum retail price Rp950, up from Rp860 last year.
* Group II: Excise unchanged; minimum retail price Rp200, unchanged from last year.

Cut Tobacco (TIS)

* Excise unchanged; minimum retail price Rp55-180, unchanged from last year.

Clove Cigarettes (KLB)

* Excise unchanged; minimum retail price Rp290, unchanged from last year.

Cigars (CRT)

* Excise unchanged; minimum retail price Rp495 to Rp5,500, unchanged from last year.