Jakarta, CNN Indonesia —
Minister of Finance Sri Mulyani will raise the lowest retail selling price (HJE) cigarette an average of 12 percent starting January 1, 2022. Prices are getting more expensive as the average cigarette excise increases.
“This tariff (tax) adjustment will be followed by an increase in HJE. This is the purpose for comply to the Excise Law so that the excise rate does not exceed the limit of 57 percent of the HJE,” said Ani, her nickname, at a press conference, Monday (12/13).
In addition, the price adjustment also considers that the market transaction price (HTP) and HJE have exceeded 100 percent.
In Ani’s view, the minimum HJE limit is raised the same as the average cigarette tax tariff increase.
With this adjustment, the price of cigarettes in Indonesia rose to Rp. 38,100 per pack for machine-made kretek cigarettes (SKM) containing 20 sticks. The third most expensive in the ASEAN region, behind Singapore and Malaysia.
The government also simplifies the layers of excise tariffs for SKM-SPM IIA and IIB by taking into account the low difference in excise rates, the growth in production of class II, the impact on the decline in production and revenue is not significant, and there are manufacturers who are in 2 layers at once.
The following is the lowest retail selling price of cigarettes in 2022 (per 20 sticks):
SKM I increased from Rp34,020 to Rp38,100
SKM IIA and II B increased to Rp22.800
SPM I increased from Rp35,800 to Rp40,100
SPM IIA and SPM IIB increased to Rp22,700
SKT IA increased from Rp29,300 to Rp32,700
SKT IB increased from Rp20,300 to Rp22,700
SKT II increased from Rp10,700 to Rp12,000
SKT III increased from Rp9,000 to Rp10,100
(uli / sfr)
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