Indonesia to slow down pace of tobacco tax hike due to pandemic (Update)

Tobacco taxes are often controversial in Indonesia, with big tobacco companies often saying a decline in sales hurts the livelihood of farmers and increase sales of illegal cigarettes. - AFP

JAKARTA (Reuters): Indonesia will raise the excise tax on tobacco products by an average of 12.5% in 2021, the country's finance minister said on Thursday (Dec 10), citing a need to balance efforts to control smoking with the need to support an industry that is a major employer.

The 2021 increase compares with the 23% average excise tax hike this year and may disappoint health groups pushing for stronger action in a country with one of the highest smoking rates in the world.