Illicit Consumption fell by 22.2% to 31.4 billion cigarettes in 2017. This represented 9.7% of Total Consumption.
Illicit Consumption of cigarettes in Indonesia is almost entirely composed of Domestic Illicit. This is driven by the complex Excise Tax system, providing the opportunity and incentive for domestic manufacturers to under-declare their liabilities to authorities.
After rising for four consecutive years since the beginning of the Asia Illicit Tobacco Indicator research programme, Illicit Consumption declined in 2017. This follows a concerted effort by Customs & Excise to increase enforcement and combat illicit trade.
The Tax Loss from Illicit Consumption was estimated at IDR 13.3 trillion in 2017.
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