Important For Economy, Deputy Minister Of Finance Affirms Tobacco Industry Policy Closed To Presidential Level

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the tobacco industry and tobacco products have a strategic role in national economic development. According to him, the strategic position requires the government to hold talks up to the head of state level.

"Every time the government talks about tobacco policy, including the excise policy on tobacco products, this issue is even carried out at the meeting level with the president," he said in a national webinar on the Prospects and Challenges of the Tobacco Products Industry (IHT) in the Pandemic Period, Thursday, September 9th.

Suahasil added, there are at least four important issues that will continue to be attached to the tobacco industry, namely the condition of the industry's contribution, labor, consumption control, and state revenues.

"The first is how the tobacco products industry (IHT) is encouraged to develop further in order to become one of the pillars of the national economy," he said.

The second is how to maintain the tobacco industry as a sector that provides and absorbs a large number of workers.

"Of course this is our homework together how from an industry and employment perspective we can continue to provide support," he said.

Next is consumption control. The representative of Sri Mulyani said that if tobacco consumption in the long term will have an impact on aspects of public health.

“If it has an impact on health, it will definitely have an impact on health costs. This is a dimension that we must also pay attention to in formulating prices and excise taxes on tobacco products,” he said.

Then the last is the aspect of state revenue. Suahasil revealed that many of the tobacco industry players have not been included in the official government scheme. This means that there are still many tobacco product-producing companies that market their products illegally.

“We want all tobacco products industry players to be able to enter class (legally) and operate according to applicable regulations. Because, by obeying the rule of law, there is no need to feel being chased," he said.

Most recently, the government through the Ministry of Finance has just released incentives for delaying the payment of excise stamps starting July 1, 2021. The policy is contained in Minister of Finance Regulation (PMK) Number 93/PMK.04/2021 concerning the Second Amendment to PMK Number 57/PMK.04/ 20217 on Postponement of excise payments.

Later, the regulation will allow payment of excise duty from the previous 60 days to 90 days for business entities that order excise stamps before the 9 July 2021 period.