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View all search resultsThe government has walked back its previous plan to raise the tobacco excise tax, a policy that had been a central pillar of its earlier crackdown on illegal cigarettes. Under the former administration, the approach was largely punitive, marked by annual excise hikes, aggressive “Gempur Rokok Ilegal” raids on small retailers, and stiff penalties for anyone caught selling untaxed products. In a major policy shift, Finance Minister Purbaya Yudhi Sadewa has now announced that the government will instead offer amnesty to illegal cigarette producers, aiming to incentivize them to register, fulfill their tax obligations, and transition into the formal, regulated market.
Jakarta’s plan to expand smoke-free zones and tighten cigarette sales regulations has been met with strong pushback from business groups, who warn that the new rules could eat into revenues and disrupt livelihoods.
The government has committed to curbing online tobacco promotions by forming a special task force to monitor and remove such advertisements, which remain rampant in the digital sphere and pose health risks especially among children and teenagers.
A newly issued regulation rolls out stricter sales, marketing and packaging controls on cigarettes and e-cigarettes as part of the government's nationwide clampdown on tobacco use, especially among Indonesian youths.
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