Illegal Cigarettes, Kudus Customs And Excise Saves Potential State Loss Of IDR 15.99 Billion

KUDUS - The Customs and Excise Supervision and Service Office (KPPBC) Type Kudus, Central Java, managed to save the potential state loss of Rp. 15.99 billion from the results of the violation in the cigarette excise sector during January-October 2023. "The potential loss of the state of Rp. 15.99 billion is the calculation of the cigarette excise value based on the cheapest kretek cigarettes excise rate of Rp. 600/batang, plus a value added tax (PPN) of 9.9 percent multiplied by retail selling prices (HJE) of around Rp. 1,140. It is still added with a cigarette tax of 10 percent of the excise value," said Head of the KPPBC Information Section of the Kudus Excise Type. Sandy Hendratmo Sopant quoted by ANTARA, Tuesday, November 14.

Meanwhile, the number of cigarette evidence that was secured, either cigarettes without excise tape attached or with excise stamps, was suspected to be fake, a total of 18.59 million sticks.

Of the amount of evidence that was successfully secured during the January-October 2023 period, he said, the value of the goods is estimated at Rp. 23.33 billion, while the number of 157 cases of violation of cigarette excise stamps.

He ensured that the number of prosecutions would increase, because the Kudus KPPBC team routinely carried out surveillance in the work area, starting from Kudus, Jepara, Pati, Blora, and Rembang.

With this action, it is hoped that KPPBC Kudus can prevent the circulation of illegal cigarettes in the market, while the potential loss to the state in the form of excise levies and VAT from tobacco can be saved.

In order to make the public aware not to be involved in the circulation of illegal cigarettes, Kudus Customs and Excise also collaborated with the local government to socialize the eradication of illegal cigarettes.

The Kudus Regency Government in addition to conducting socialization of regulations in the field of excise, also has a solution to overcome the manufacture of illegal cigarettes by providing a tobacco products industrial area (KIHT) to accommodate cigarette entrepreneurs who are unable to build factories according to regulations.

Cigarettes are subject to excise duty in production, sales, and marketing as stipulated in the Excise Sector. In the marketing of cigarettes, the original excise band must have been attached.

Perpetrators of illegal cigarette violations can be subject to imprisonment of 1-8 years and fines up to 20 times the excise value that should have been paid. The state does not prohibit the people from producing cigarettes, as long as it is in accordance with legal regulations.