Government Targets Rp 150 Trillion in Cigarette Excise Revenue

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22/08/2016 16:17 WIB

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Government Revenue from Cigarette Excise 2008-2017 (2016 Revised State Budget; 2017 State Budget)

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Government Revenue from Cigarette Excise 2008-2017 (2016 Revised State Budget; 2017 State Budget)

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In the 2017 State Revenue and Expenditure Budget (RAPBN), the government targeted state revenue from tobacco excise duties of Rp 149.9 trillion, a 5.8 percent increase compared to the 2016 Revised State Budget (APBNP) projection of Rp 141.7 trillion. Cigarette excise duties remain a mainstay of state revenue, contributing more than 10 percent of total tax revenue, valued at Rp 1,461.8 trillion. Excise duties from hand-rolled tobacco production are the third largest contributor to national tax revenue, after Income Tax (PPH) at Rp 784.7 trillion and Value Added Tax (PPN) at Rp 493.9 trillion.

The proposal to increase cigarette prices to Rp 50,000 per pack has sparked debate among the public. Some agree, believing it will reduce the number of smokers. Others disagree, arguing it could have wider economic consequences, particularly concerning the substantial workforce employed in the cigarette industry. However, the government undoubtedly still needs revenue from cigarette excise duties to finance state expenditure.

"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."

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Government Targets Rp 150 Trillion in Cigarette Excise Revenue

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Government Targets Rp 150 Trillion in Cigarette Excise Revenue

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Environmental Budget for 38 Provinces of Indonesia in 2025

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OIKN Budget Realization Only 55.9% of Ceiling as of November 2025

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Indonesia's Regional Budget Spending January-October 2025 Slows Compared to Last Year

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