Ministry of Finance Clarifies Excise Policy on Illegal Cigarettes

No Special Tariff for Illegal Products

The Indonesian Ministry of Finance has made it clear that there will be no special excise tariff implemented for illegal cigarettes. This decision was communicated by Febrio Nathan Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry. The excise structure is specifically designed for legal business operators who comply with existing regulations.

Legal Framework for Excise Tariffs

Febrio explained that products without proper excise stamps or those not adhering to the regulations set by the Directorate General of Customs and Excise are categorized as illegal. Consequently, these products are not subject to tariff adjustments but rather face legal enforcement actions. The Ministry emphasizes a compliance regime for illegal products, distinguishing them from legal goods that are subject to regulated tariffs.

Implications for Compliance and Enforcement

The Ministry's stance underscores the importance of compliance with existing customs and excise regulations. By maintaining a clear distinction between legal and illegal products through the excise tariff structure, the government aims to enforce stricter controls over the cigarette industry. This approach is expected to reduce the circulation of illegal cigarettes and ensure that legal businesses operate on a fair and regulated basis.