Indonesia to raise cigarette excise tax to reduce young smokers

JAKARTA, Nov. 3 (Xinhua) -- The Indonesian government has decided to increase cigarette excise tax to reduce the prevalence of young smokers and increase awareness about the dangers of smoking for 2023 and 2024, Finance Minister Sri Mulyani said on Thursday.

The meeting on tobacco excise policy led by President Joko Widodo at the Bogor Presidential Palace said the government would increase the excise rate for machine-made clove cigarettes from 11.50 to 11.75 percent, white cigarettes from 11.00 to 12.00 percent, and hand-rolled cigarettes at an average 5 percent.

The increase in excise rates will also apply to electronic cigarettes by an average rate of 15 percent.

"Cigarettes are the second highest consumption by urban poor households at 12.21 percent and rural at 11.63 percent, also one of the causes of stunting and death," said Minister Mulyani.

In its National Medium-Term Development Plan for the 2020-2024 period, Indonesia targets to reduce the prevalence of smokers in youth aged 10 to 18 years from 9.1 percent to 8.7 in 2024.