The Cigarette Factory In Pati Increases, The Total is 111

JAKARTA - The number of cigarette factories in the Pati Residency, which is the working area of the Madya Kudus Type of Customs Supervision and Service Office, Central Java, in 2021 has actually increased compared to before, despite the COVID-19 pandemic.

"This year the total number of cigarette factories is 111 factories spread across the residency of Pati, an increase from the previous 80 factories", said Head of the Inspection and Service Office of Customs and Excise (KPPBC) Type Madya Cukai Kudus Gatot Sugeng Wibowo, quoted from Antara, Friday, February 26.

Despite the pandemic era, many businessmen are interested in setting up cigarette factories to produce hand-rolled kretek (SKT) cigarettes. This is inseparable from the upward trend in demand for SKT-type cigarettes during the pandemic, following the decline in people's purchasing power.

Class II and III cigarettes are getting the right momentum, because consumers who usually consume class I cigarettes with a premium machine-type kretek cigarette (SKM), in the midst of a pandemic with declining purchasing power, switch to more affordable cigarettes.

However, this condition does not guarantee that state revenue through cigarette excise will increase, considering that the rates charged for class I cigarettes have increased quite high, compared to other groups.

KPPBC Kudus also faces challenges to be able to meet the revenue target charged in 2021 to reach IDR 34.2 trillion or higher than the realization in 2020 of IDR 33.46 trillion. The reason is, starting this year, there are cigarette manufacturers that have proposed to decrease from class I to class II for several reasons.

This is predicted to affect cigarette excise revenue up to IDR 1 billion a year.

To maximize cigarette excise revenue, KPPBC Kudus will endeavor to assist the marketing of class II and III cigarettes in order not to be disturbed by illegal cigarettes. Among other things, increasing the supervision of illegal cigarettes and the existence of Satpol PP with the support of a larger budget from the revenue sharing funds for tobacco products (DBHCHT) will also be maximized to help combat the circulation of illegal cigarettes.

Throughout 2020, KPPBC Kudus noted that seven cases were declared complete (P21), then 19 files of notes on the imposition of administrative sanctions, and 14 cases were delegations from other offices.