2017 Cigarette Excise Tax Revenue Target: Rp 150 Trillion

In the 2017 State Budget (APBN), the government targeted excise tax revenue from cigarettes of Rp 149.9 trillion out of total excise tax revenue of Rp 157.2 trillion. Total excise tax revenue in the 2017 APBN increased by 6.1 percent from excise tax revenue in the 2016 Revised State Budget (APBN-P), which amounted to Rp 148.1 trillion.

The government targeted excise tax revenue to be 10.5 percent of total tax revenue in 2017, namely Rp 1,498.9 trillion out of total state revenue of Rp 1,750.3 trillion.

Starting January 1, 2017, the government implemented Minister of Finance Regulation (PMK) Number 147/PMK.010/2016 concerning the Third Amendment to Minister of Finance Regulation Number 179/PMK.011/2012 concerning Excise Tariffs on Tobacco Products. In this PMK, the government increased the average excise tax rate on cigarettes by 10.54 percent. Furthermore, the government also regulated the retail price (HJE) of cigarettes starting January 1, 2017.