Finance Minister Purbaya aims to implement new tobacco excise layer this year

Finance Minister Purbaya Yudhi Sadewa is making efforts to implement a new layer in the tobacco excise tariff structure this year. He explained that the policy aims to draw the circulation of illegal cigarettes into the legal ecosystem by imposing a specific excise rate. The government will also take firm action against distributors who refuse to transition to the legal system. The decision still requires discussion with the House of Representatives (DPR RI). The plan was announced during a press conference on the 2027 State Budget Draft and Financial Note in Jakarta on Friday. The 2027 tax revenue target is set at Rp2,908 trillion, up 10.5 percent from the 2026 projection, with customs and excise revenue targeted at Rp316.6 trillion. Key fiscal strategies include sustaining tax reforms, strengthening digital economy taxation, and providing targeted incentives to drive investment and downstream industries.