Ministry Of Finance Brings Good News To Cigarette Company: Government Issues Tens Of Trillion Incentives To Delay Paying Cigarette Excise Ribbons

JAKARTA - The government through the Ministry of Finance is said to have provided tax incentives in the form of delaying the payment of excise stamps starting July 1, 2021.

This facility is a breath of fresh air for tobacco processing industry players such as Djarum, Gudang Garam, and HM Sampoerna.

The incentives are listed in the Minister of Finance Regulation (PMK) Number 93/PMK.04/2021 concerning the Second Amendment to PMK Number 57/PMK.04/20217 concerning Delays in excise payments.

In this policy, the Ministry of Finance led by Sri Mulyani set an extension of excise payment from the previous 60 days to 90 days for business entities that ordered excise stamps before the period of July 9, 2021.

Citing information reported by the Directorate General of Customs and Excise (DJBC), there are at least 10 corporations that take advantage of this facility with an incentive value of IDR 43.23 trillion.

As an illustration, this figure is comparable to 34 percent of the total state revenue on tobacco excise (CHT) which amounted to more than IDR 125 trillion.

In detail, the business entities that have made the most use of these facilities include Gudang Garam with a value of IDR 17.46 trillion, HM Sampoerna of IDR 12.38 trillion, and Djarum of IDR 6.23 trillion.

In his statement, Director General of Customs and Excise, Askolani, stated that the latest regulation issued by the government is a follow-up to the input of entrepreneurs who hope that there will be relaxation in fulfilling excise obligations. Askolani believes this incentive can help business actors maintain their cash flow until the end of the year.

To note, this year the government targets customs and excise revenues in the 2021 State Budget to be IDR 215 trillion. Meanwhile, the realization until the first semester of 2021 was recorded at IDR 122.2 trillion.

One interesting thing is that the Minister of Finance, Sri Mulyani is optimistic that the revenue from the customs and excise sector will exceed the target set with an outlook value of IDR 233.4 trillion or 108.6 percent of the budget ceiling.

Meanwhile, in the 2022 State Budget Draft Law, it is stated that tax revenue (tax plus customs and excise) is IDR 1,506.9 trillion or grows 9.5 percent from the 2021 State Budget.