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on Value-Added Tax on Deliveries of Tobacco Products (“Regulation 63/2022”), which at the time of its promulgation repealed and replaced the previous framework of Regulation of the Minister No. 174/PMK.03/2015 on Procedures for the Calculation and Collection of Value-Added Tax on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]