Sri Mulyani Demands Illegal Trade on Cigarette Cut Off Below 4%

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati along with the ministry`s Customs Directorates officials destroyed 16.8 million illegal cigarettes in Tanjung Perak Port, Surabaya, Thursday, August 2. She demanded illegal distribution on cigarettes suppressed to below 4 percent this year.

“I ask the director general to cut off [its distribution] to under 4 percent in 2018. I know they say it is a hard task,” said Sri Mulyani. However, she appreciated all efforts done by the Customs Directorate in repressing the rate of illegal cigarettes distribution.

Other than saving the community, Sri Mulyani said, the preventive measure would also add up the state finance. “For example, how many customs they do not pay for 30 million cigarettes?”

Based on a survey conducted by Gajah Mada University, the figure of illegal cigarettes distribution was declined to 7.04 percent in 2018, when compared to that in 2016 at 12.14 percent. Sri Mulyani said the potential customs accumulated throughout the period worth Rp1.5 trillion.

The total cigarettes destroyed was only a part of the total seizure done by East Java Customs Regional Office I. As of July 2018, they had confiscated 30 million illegal cigarettes.

Sri Mulyani mentioned the operations on the illegal distribution of cigarettes conducted by the Customs Directorate gradually increased over the years. There were 1,474 cases in 2015 and 2,259 cases in 2016 while in 2017, it reached 3,965 cases. As of July 2018, 3,390 cases were recorded.

CAESAR AKBAR