PPN Rates for Deliveries of Tobacco Products by Producers and Importers Updated

As a follow up to the promulgation of Law No. 7 of 2021 on the Harmonization of Taxation Regulations (“ Law 7/2021 ”), the Minister of Finance (“ Minister ”) recently issued 14 implementing regulations that relate to the imposition of value-added tax (pajak pertambahan nilai– “ PPN ”). One of these frameworks is Regulation of the Minister No. 63/PMK.03/2022 on Value-Added Tax on Deliveries of Tobacco Products (“ Regulation 63/2022 ”), which at the time of its promulgation repealed and replaced the previous framework of Regulation of the Minister No. 174/PMK.03/2015 on Procedures for the Calculation and Collection of Value-Added Tax on Deliveries of Tobacco Products and its Amendment (jointly referred to as “ Regulation 174/2015 ”). [1]