Finance Minister Purbaya Yudhi Sadewa has confirmed that the\ncigarette excise tariff policy will not change in 2027.<\/p>\n
\u201cThere won\u2019t be (an increase),\u201d Purbaya said in the grounds of the\nState Palace, Jakarta, quoted on Friday (24\/7\/2026).<\/p>\n
According to Purbaya, the tobacco excise policy will only undergo\nslight modification in its tariff layers.<\/p>\n
He said a change planned since early this year \u2014 adding a new\ncigarette excise layer as an instrument to turn illegal cigarette\nproducers into legal ones \u2014 will be implemented.<\/p>\n
Purbaya said the addition of the new cigarette excise layer must\nfirst be discussed with the DPR\u2019s Commission XI, after deliberations on\nthe 2027 state budget bill are completed.<\/p>\n
\u201cThere will be one new layer later. It must be reported to the DPR,\nand this will be done after this bill\u2019s deliberations are finished,\u201d he\nasserted.<\/p>\n
As is known, before Purbaya took office as finance minister in\nSeptember 2025, the government raised tobacco excise tariffs (CHT)\nalmost every year by a weighted average of 10\u201312%. In the last 15 years,\ntariffs were only left unchanged three times: in 2014, 2019 and\n2025.<\/p>\n
In 2014, cigarette excise did not rise because of a new regulation,\nLaw No.\u00a028 of 2009 on Regional Taxes and Levies (PDRD). Under that law,\n2014 was designated as a transition period for implementing the regional\ncigarette tax.<\/p>\n
In 2019, cigarette excise was not raised on the grounds of economic\nslowdown and weakened purchasing power. However, many viewed the\ngovernment\u2019s decision as politically biased, as a presidential election\nwas held that year.<\/p>\n
In 2025, the government did not raise the CHT tariff, but it made\nadjustments to the retail sale price (HJE). This policy also continued\ninto 2026.<\/p>\n
Industry players had in fact proposed to Purbaya a three-year\nmoratorium on excise and HJE increases, on the grounds that public\npurchasing power has not fully recovered.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/purbaya-no-increase-in-cigarette-excise-duty-in-2027-1784865039", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }