Gapero Surabaya urges government to freeze tobacco excise rates

The Surabaya Association of Tobacco Entrepreneurs (Gapero) is urging the Indonesian government to refrain from increasing Tobacco Excise Rates (CHT) in 2026. The group expressed concerns that the legal tobacco industry is currently under significant pressure from non-fiscal regulations and the widespread circulation of illegal cigarettes.

Gapero Chairman Sulami Bahar stated that while the association supports the proposal to expand production strata for Group II cigarettes to combat illegal trade, the policy must be implemented carefully. He warned that new regulations should not inadvertently stifle small-scale manufacturers or force them into higher tax brackets that threaten their survival.

Bahar emphasized that East Java is a vital hub for the national tobacco ecosystem, supporting local farmers and a large labor force. He called for more inclusive dialogue between the central government and industry stakeholders, particularly regarding non-fiscal regulations that impact the business climate.