Govt. Sets New Excise Tariffs for Tobacco Products

With the overall objective of controlling the consumption of tobacco products across Indonesia while accommodating targets for the excise contribution made by said products to state revenue in 2018, the Ministry of Finance (“ Ministry ”) has issued Regulation No. 146/PMK.010/2017 onExcise Tariffs for Tobacco Products(“ Regulation 146/2017 ”). [1] Prior to the issuance of Regulation 146/2017, these same matters were previously regulated under Ministry Regulation No. 179/PMK.011/2012 [2] onExcise Tariffs for Tobacco Products, which has since been amended several times, most recently through the issuance ofRegulation No. 147/PMK.010/2016 [3] (“Previous Regulations”) .Producer Categories andTobacco producers (“Producers”) are categorized based on the types of tobacco product that they produce and the relevant production limits, asspecified under Appendix I toRegulation 146/2017. [4] Comparisons between the new and former production categories and limits are set out in the following table: [5]