Sri Mulyani Announces 2021 Tobacco Excise Tax Increase of 12.5 Percent



Petir Garda Bhwana

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  • TEMPO.CO, JakartaFinance Minister Sri Mulyani Indrawati on Thursday said the government will raise 12.5 percent of the cigarette/tobacco excise tax in 2021. 

    “This policy is the tariff excise for tobacco yields and we need to raise them in 2021 due to the ongoing COVID-19 pandemic,” said Sri Mulyani in the virtual press conference on December 10.

    This increases the tax for the production of ‘type 1 machined white cigarettes’ by 18.4 percent while type 2a will see 16.5 percent increase, and the 2b type up to 18.1 percent. Added with increases in other categories, the average increase for 2021 is 12.5 percent. 

    Meanwhile, the traditional 'kretek' cigarettes will not see tax increases as Sri Mulyani said this category has the largest labor element involved as most that fall under this category are local businesses.

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