Illegal Cigarette Excise Costing State Nearly 1tn Revenue Yearly
20 September 2018 19:42 WIB
TEMPO.CO, Jakarta - Gadjah Mada University (UGM) just completed a survey studying the excise of illegal cigarettes throughout 2018. The result revealed that 7.04 out of 100 packs of cigarettes sold at stalls are in violations of the Finance Ministry`s excise regulations.
"This violation has the potential to reduce state revenues by Rp909 billion to Rp980 billion in a year," UGM researcher Arti Adji said at the Finance Ministry's building in Jakarta, Thursday, Sept. 20.
The survey noted that the most common violation was the circulation of cigarettes without an excise banderole, which is 52.6 percent. The next type of violation that occurred most was the circulation of fake or knock-off brands (15 percent).
Read: Cigarette Consumption Affects Indonesia's Poverty Rate
The Finance Ministry's director general of customs and excise Heru Pambudi said his team would continue to crack down cigarette producers that practice illegal use of excise stamps and banderoles.
"If we eradicate illegal cigarettes, prices will increase; and this would have a good health impact eventually," he said.
Ismanu Soemiran, chairman of the Indonesian Cigarette Manufacturers Association (GAPPRI) said that legal producers suffer damage from the circulation of un-excised cigarettes. Without excise, illegal cigarettes can be sold cheaper and cause unfair business competition.
Fajar Pebrianto
