Purbaya Says Cigarette Excise Rate Will Not Increase Next Year

Menteri Keuangan Purbaya Yudhi Sadewa has confirmed that the tobacco products excise tax (CHT), or cigarette excise, will not rise or fall next year, 2027. The government is prioritising stability in the tobacco industry while strengthening revenue collection oversight in the sector. ‘I will keep it constant,’ Purbaya said at a press conference for APBN Kita in Jakarta on Tuesday, 19 May 2026. He stressed that there are no plans to raise or lower cigarette excise rates. He added that the government is also preparing to digitalise oversight of the cigarette industry by installing production-counting machines at several cigarette factories. The move aims to reveal the true potential of state revenue from the tobacco industry while curbing illegal cigarette practices. ‘We will install counting machines at several cigarette producers, gradually digitalising the process,’ he said. Purbaya said he first wants to assess the net revenue potential from the cigarette industry once illegal practices have been curbed before deciding the direction of future excise policy. ‘I also want to see, really, how much income from cigarettes there is if the illicit, black market activity can be eliminated. From that, I will recalculate whether it can be increased or decreased,’ he said. On the other hand, Purbaya noted that customs and excise receipts have begun to improve at the start of this year. As of April 2026, customs and excise receipts stood at Rp 100.6 trillion, up 0.6% annually. He said that this performance was better than the conditions in February and March 2026, which had contracted. ‘February was down 14 percent, March down 12 percent, now it is up 0.6 percent,’ he said. He believes the improvement indicates that export, import, and trade activities are recovering. In addition, the government highlighted strengthened customs and excise oversight, especially over illicit cigarette circulation. Purbaya said the Directorate General of Customs and Excise has significantly intensified enforcement against illegal cigarettes this year. ‘The number of illegal cigarettes seized in 2025 was 303 million sticks. In 2026 it has reached 684 million sticks,’ he said.