Sri Mulyani: Cigarettes are sold by companies below the Bandrol price

Tobacco products and cigarettes excise revenues grew 18.4% year-on-year (yoy), to Rp 11.2.7 trillion. It grew by 0.7% in comparison to the previous month.

The reality is that cigarettes production has fallen to 2.8% yoy, to 26.47 Billion sticks.

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“Production of tobacco products increased by 2.8% from production not as low as the excise revenues,” Sri Mulyani indrawati, Finance Minister, said Wednesday, 25/8/2021, at a virtual press conference about the KITA State Budget.

“The average weighted tariff increased by 10.4%, which is lower than 12.5%. This means that cigarette companies are selling below their official prices. He explained that the factory producing goal 1 cigarettes has high production costs and tariffs.

This year, the government increased the cigarette excise taxes. The average weighted increase was 10.4% to 618 rupees per stick.

The government, through the Directorate General of Customs and Excise (“DJB”), continues to tighten control over illegal cigarettes. An increase in illegal cigarettes is triggered by a higher price for cigarettes.

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