Indonesia to keep current excise tax rates for tobacco products in 2025

Indonesia will not raise excise tax rates for tobacco products next year and will consider other policies to try to discourage smoking, including changes in retail prices, a finance ministry official said on Monday (Sep 23).

Indonesia will use the 2024 excise rates for tobacco products in 2025, Askolani, the director general of customs and excise at finance ministry said.

Indonesia raised excise rates on tobacco almost every year in the past few years to cut its smoking rate among its youth.

“We won’t adjust the rates next year, but we will look for other alternative policies, including adjustment in retail prices,” Askolani said.

He did not say when such policies might be introduced.

Indonesia raised excise tax rates for tobacco products by an average of 10 per cent each year in 2023 and 2024 in an effort to control cigarette consumption.

According to a health ministry survey in 2023, Indonesia had 70 million smokers among its population of about 280 million people. It said 7.8 per cent of smokers were between the ages of 10 to 18. REUTERS