Finance Minister Sri Mulyani Indrawati has set a 9.1 percent of Value Added Ta (VAT) for tobacco products for 2017. The percentage was higher compared to the number set in 2016 of 8.7 percent, and 8.4 percent in 2015.
 

According to information quoted from the Finance Ministry website on Monday, January 9, 2017, the new tariff is stipulated in Finance Minister Regulation No. 207/2016 on Guideline for Calculating and Collecting Value Added Tax for Tobacco Products.
 

Tobacco products subject to the Regulation include cigarettes, cigars, chopped tobacco, and other tobacco products. According to the Regulation, the VAT is calculated based on effective tariffs multiplied by other values. The Regulation has entered into force on January 1, 2017. 


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