Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa plans to add another layer of excise tax on tobacco products (CHT), or cigarettes, this year.
"We will confirm a new layer, perhaps. It is still being discussed," he told reporters in Jakarta on Wednesday.
According to him, the added tariff layer is intended to encourage illicit cigarette producers to transition into the legal market, ensuring that all industry players fulfill their tax obligations to the state.
Purbaya said strict sanctions would be imposed on parties that continue to evade their obligations.
“I have warned them. Once the regulation is issued, possibly next week, any continued non-compliance will be met with firm enforcement,” he emphasized.
The CHT tariff structure has been gradually simplified, from 19 layers in 2009 to eight layers in 2022. The latest regulation governing the tariff structure is stipulated in Finance Minister Regulation (PMK) Number 97 of 2024.
Meanwhile, the Directorate General of Customs and Excise at the Finance Ministry has seized 1.4 billion illegal cigarettes in 20,102 enforcement actions since 2025, with the most recent case involving 160 million cigarettes in Pekanbaru, Riau.
Director General of Customs and Excise Djaka Budi Utama said in a press conference in Pekanbaru on January 7 that the scale of seizures reflects the widespread circulation of illegal cigarettes and serves as a strong warning to violators.
The latest enforcement action took place at a warehouse in Pekanbaru on January 6, involving approximately 160 million cigarettes.
This single case accounted for nearly 11 percent of total seizures recorded since 2025, making it strategically significant in the national effort to eradicate illegal cigarette distribution.
In 2025, Customs and Excise recorded total seizures valued at Rp9.8 trillion (US$564 million), marking a 2.1 percent increase, or Rp210 billion (US$12 million), compared with the previous year.
