Cigarette Excise Tax Increased by 12%: Price List per Pack Starting January 2022

The Indonesian Ministry of Finance has officially raised the excise duty on tobacco products (CHT) to 12%, effective January 1, 2022. This increase in cigarette excise duty will inevitably drive up the retail selling price (HJE) of cigarettes.

Finance Minister Sri Mulyani stated that the HJE for a pack of 20 cigarettes next year will range from Rp 10,100 to Rp 40,100. For Machine-Made Clove Cigarettes (SKM), the price will range from Rp 22,800 to Rp 38,100.

Machine-Made White Cigarettes (SPM) will range from Rp 22,700 to Rp 40,100. Meanwhile, Hand-Rolled Clove Cigarettes (SKT) will range from Rp 10,000 to Rp 32,700.

This increase in selling price is in line with the increase in cigarette excise duty rates next year, which will range from 2.5% to 14.4%. The highest increase in rates is for SPM, ranging from 12.4% to 14.4%. The excise tariff for SPM I will increase by 13.9%, SPM II A by 12.4%, and SPM II B by 14.4%.

The excise tariff for SKM will increase by 12.1% to 14.3%. The details are: SKM I by 13.9%, SKM II A by 12.1%, and SKM II B by 14.3%.

Meanwhile, the excise tariff for SKT will range from 2.5% to 4.5%. SKT I A will increase by 3.5%, SKT I B by 4.5%, SKT II by 2.5%, and SKT III by 4.5%.

The government, through this regulation, has also simplified the HJE of cigarettes to eight types from the previous ten. This price simplification is mainly for SPM II A and II B, which will have a single price, and SKM II A and II B, which will also have the same price.

The following is a list of the minimum HJE per pack of cigarettes effective January 2022:

1. Machine-Made Clove Cigarettes (SKM)
* SKM I: Rp 38,100 per pack or Rp 1,905 per cigarette
* SKM II A and II B: Rp 22,800 per pack or Rp 1,140 per cigarette

2. Machine-Made White Cigarettes (SPM)
* SPM I: Rp 40,100 per pack or Rp 2,005 per cigarette
* SPM II A and II B: Rp 22,700 per pack or Rp 1,135 per cigarette

3. Hand-Rolled Clove Cigarettes (SKT)
* SKT I A: Rp 32,700 per pack or Rp 1,635 per cigarette
* SKT I B: Rp 22,700 per pack or Rp 1,135 per cigarette
* SKT II: Rp 12,000 per pack or Rp 600 per cigarette
* SKT III: Rp 10,100 per pack or Rp 505 per cigarette