Purbaya Affirms Illegal Cigarette Destruction For The Sake Of Market Justice And State Revenue

Minister of Finance Purbaya Yudhi Sadive (Photo: Doc. VOI)

JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadive emphasized that the destruction of illegal cigarettes was carried out to protect markets and business actors who obeyed to pay excise duty.

According to him, illegal cigarettes that are not subject to excise duty create unfair competition and harm producers and traders who comply with tax rules.

"There are those who pay taxes, some don't pay taxes. If those who pay taxes are reported to those who don't pay excise tax, they will lose," he said at a press conference, Thursday, October 2.

Therefore, he added that the government is obliged to secure the market so as not to be contaminated by smuggled goods and maintain state revenues.

"The excise duty does not increase. But I guarantee them that the government's income will increase. I will guard the market here, not to be contaminated with smuggled goods. That's the first," he explained.

Purbaya said that at the same time, the government had no intention of killing the cigarette industry.

He added that the steps taken by the Government were to strengthen supervision at ports, dismantle illegal production centers, and plan the development of a tobacco products industrial area to provide direct guidance to domestic business actors.

"There we will discuss with the current perpetrators. We will define, determine what the tariff pattern will be for them and the coaching will be directly fostered there. But what is clear is that we do not aim to destroy the cigarette industry, including the illegal ones," he said.

He said that the main goal is to create a fairer business climate and increase state revenue without harming business actors.

According to him, after empowerment is carried out, the perpetrator must fulfill his tax obligations and if he does not comply, the government will enforce sanctions in accordance with legal provisions.

"But after being empowered, you have to pay taxes. If I don't brush it, I have no mercy," he explained.