The Effect of Cigarette Taxes on Cigarette Consumption Behavior in Indonesia

Amstrong Lambok Marihot Pangaribuan (Accounting Study Program, Faculty of Social Sciences, Panca Budi University, Medan, Indonesia)
Iqal Aulia Fawwas (Accounting Study Program, Faculty of Social Sciences, Panca Budi University, Medan, Indonesia)
Rohman Nelanda Syahputra (Accounting Study Program, Faculty of Social Sciences, Panca Budi University, Medan, Indonesia)
Renny Maisyarah (Accounting Study Program, Faculty of Social Sciences, Panca Budi University, Medan, Indonesia)

International Journal of Health, Economics, and Social Sciences (IJHESS)
Vol. 8 No. 1: Januari 2026

Cigarette consumption in Indonesia remains relatively high despite the government’s implementation of cigarette excise tax policies as fiscal instruments and consumption control measures. This study aims to analyze the effect of cigarette excise taxes on smoking consumption behavior in Indonesia. The research employs a literature review method with a descriptive-analytical approach, utilizing secondary data from publications of the Ministry of Finance and scholarly journals that examine the relationship between cigarette prices, income levels, and consumption patterns. The findings indicate that increases in cigarette excise taxes, which lead to higher cigarette prices, tend to reduce consumption levels, particularly among low-income groups and light smokers. However, the impact is relatively smaller among higher-income groups. Therefore, cigarette excise taxes are shown to influence changes in smoking consumption behavior, although their effectiveness still requires supporting policies to ensure a more equitable and comprehensive impact.