2023 Cigarette Excise Revenue Falls for the First Time in 10 Years

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Viva Budy Kusnandar 26/06/2024 19:00 WIB

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Government revenue from cigarette excise taxes fell in 2023. This is the first decrease in the last ten years.

Indonesian Cigarette/Tobacco Excise Revenue (2014-2023)

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Indonesian Cigarette/Tobacco Excise Revenue (2014-2023)

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Based on a report by the Indonesian Audit Board (Badan Pemeriksa Keuangan or BPK), state revenue from tobacco excise duties in 2023 reached Rp210.29 trillion.

This figure is Rp8.33 trillion lower, representing a 3.81% decrease compared to 2022. This marks the first decline in the last decade, as shown in the graph.

The BPK stated that the decrease in tobacco excise duty revenue in 2023 was due to a reduction in national cigarette production, particularly machine-made kretek cigarettes (SKM) and machine-made white cigarettes (SPM) of group 1, and was also influenced by a shift in consumer consumption towards cheaper cigarettes.

Despite the decrease, tobacco excise duties still contributed 96.1% to total national excise revenue.

Here is a breakdown of Indonesia's excise revenue realization in 2023:

* Tobacco Excise Duty Revenue: Rp210.29 trillion
* Excise Duty Revenue on Ethyl Alcohol-Containing Beverages: Rp8.09 trillion
* Excise Duty Administrative Fine Revenue: Rp283.98 billion
* Ethyl Alcohol Excise Duty Revenue: Rp126.73 billion
* Other Excise Duty Revenue: Rp39.29 billion
* Total: Rp218.83 trillion

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."