Finance Minister Purbaya rejects tax amnesty, plans new tobacco excise layers

Indonesian Finance Minister Purbaya Yudhi Sadewa has announced that there will be no tax amnesty programs during his tenure. Instead, the government will focus on improving standard tax collection methods. Purbaya noted that tax amnesty can pose risks to tax officials due to unclear data regarding tax evaders. He reported that tax revenue through July 2026 grew by nearly 30% compared to the previous year without increasing tax rates or introducing new levies.

Additionally, the Finance Minister is planning to introduce a new layer to the tobacco excise tariff structure. This policy aims to curb the circulation of illegal cigarettes by providing an opportunity for illegal producers to enter the legal system and pay required duties. Purbaya stated that the government intends to bring this plan to the Parliament for discussion following the completion of the state budget deliberations. While offering a path to legalization, he emphasized that the Directorate General of Customs and Excise will continue to crack down on those who refuse to comply.