There Are More And More Cigarette Companies In Pamekasan, East Java, The Number Of Illegal Ones Continues To Decrease

Illustration. (Photo: Doc. Antara)

JAKARTA - The number of excise cigarette companies in Pamekasan Regency, East Java continues to grow and the circulation of illegal cigarettes is decreasing.

"Currently there are 56 cigarette companies in Pamekasan that have excise duty, and this number has increased sharply, considering that previously only a dozen cigarette companies had excise duty", said Head of the Industry and Trade Office (Disperindag) of the Pamekasan Regency Government, Achmad Sjaifuddin, in Pamekasan, quoted from Antara, Thursday 24 June.

He explained that the increase in cigarette business actors who had excise taxes was due to the intensive approach and guidance carried out by the district government with the Madura Customs and Excise Office.

In addition, some business actors have begun to realize that this type of business through legal means, by the provisions of the legislation, is considered more effective, compared to illegal business methods.

"Because if the business is legal, the scope of marketing and distribution of cigarettes will also be wider", said Bambang Budianto, a cigarette businessman in Pamekasan.

Producing cigarettes illegally or without excise duty is indeed cheaper in terms of costs and more benefits.

However, business actors will be burdened with an illicit marketing system or not open. Sales of cigarettes from the results of their business also cannot be freely circulated as legal and excise cigarettes.

"With excise duty, the cost is indeed more, but the marketing potential will also be wider and we don't have to sell the cigarettes that we produce secretly", he explains.

The cigarette company managed by Bambang Budianto is one of 56 local cigarette companies in Pamekasan that has produced legal and excise cigarettes.

Apart from the calm side of the business, another consideration that triggered Bambang to choose the legal route in terms of producing cigarettes was also because of the principle of the benefits of cigarette excise on the welfare of the Pamekasan people through the tobacco product excise sharing fund (DBHCHT).

He explained that excise tobacco companies could ultimately contribute to state revenue and the funds were used for the welfare of the community as much as possible. Among them are the welfare of farmworkers and tobacco factory workers in the form of direct cash assistance (BLT) and the procurement of agricultural equipment.

"So there is also an element of empowerment if we move in the area of legal or excise cigarette production", he said.

Previously, the Pamekasan Regency Government released, the number of funds received by the Pamekasan Regency Government from the 2021 DBHCHT was IDR 64.5 billion.