Fix The Allocation Of Tobacco Excise Revenue Sharing Funds For IDR 6.5 Trillion In 2023, These Are The Three Sectors That Participate

Illustration (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani conveyed the government's plan to distribute excise levies on tobacco products (CHT) which have been decided to increase starting in 2023. According to him, the government is optimistic that CHT sector revenues can reach IDR 232.58 trillion next year.

"The state revenue from excise on tobacco products in the 2023 State Budget is IDR 232.58 trillion," he said while attending a working meeting with Commission XI of the DPR at the Senayan Parliament Complex, Jakarta, Monday, December 12.

The Minister of Finance explained, starting from the 2023 period, the CHT profit-sharing fund allocation (DBH) increased from 2 percent to 3 percent.

"Now with 2 percent of DBH distributed, it reaches IDR 4.01 trillion. Meanwhile, for next year, 3 percent of DBH will be IDR 6.5 trillion. This means that there will be a fairly high spike of around 61.9 percent of the value of DBH in 2023," he said.

In detail, the Minister of Finance stated that the distribution of DBH would then target three main sectors. The first is the health sector with a percentage of 40 percent.

"This health does have compensation due to the impact of tobacco," he said.

The second is a sector that intersects directly with the welfare of the community with a percentage of 50 percent of DBH. The second sector will target farmers and laborers through the assistance of purchasing raw materials, increasing work skills with a portion of 20 percent.

"The government will also provide cash assistance and even 30 percent of cash (assistance) to workers. If this year's DBH is IDR 6.5 trillion, it is hoped that more than IDR 3 trillion ( 50 percent of the portion) will be allocated to farmers and laborers," he said.

Meanwhile, the third sector is 10 percent which is channeled into law enforcement efforts, both in the central environment (Bea Excise) and also socialization in the regions by the local government.