New Cigarette Excise Tariff Layers Still Under Discussion, Implementation Date Unknown

The Director of Communication and User Guidance at Customs and Excise, Nirwala Dwi Heryanto, revealed that the addition of new tobacco product excise (CHT) tariff layers, intended to encourage the legalisation of current illegal cigarettes, is still in the intensive discussion stage.

“Everything is certainly being considered, and these are intensive discussions,” he told reporters when met at the Directorate General of Customs and Excise Headquarters, Jakarta, on Tuesday (9/6/202<0xC2>6).

He also noted that the determination of these layers requires consultation with the House of Representatives (DPR RI) and Finance Minister Purbaya Yudhi Sadewa.

Nirwala could not confirm whether the implementation of this policy would take effect within this year.

“The situation is still dynamic, so that is all I can say,” he remarked.

The plan to add new CHT tariff layers is being undertaken to suppress the circulation of illegal cigarettes. Previously, Finance Minister Purbaya had targeted that this new CHT policy could be implemented by June 2026.

The hope is that the additional layers will allow cigarettes that have been circulating illegally to enter the excise system and become legal. The Government will also take firm action against perpetrators attempting to circumvent the regulations.