A number of Stakeholders Encourage the Minister of Finance to Immediately Implement Special Cigarette Tariffs

Photo: Special

JAKARTA - A number of stakeholders encourage the Minister of Finance (Menkeu), Purbaya Yudhi Sadewa to immediately impose special (cheap) tax rates on tobacco products.

The owner of PR Cahaya Pro, Fathor Rozi, said that the cigarette industry in Pemekasan continues to grow and absorbs many workers. On the other hand, his party assessed that so far the high tax burden is considered burdensome, especially for new business actors, so that some cigarette brands have not been officially registered.

"When meeting with Minister of Finance Purbaya on October 2, 2025 in Surabaya, we conveyed that the central government should set a more affordable tariff scheme, especially for Sigaret Kretek Mesin (SKM) business actors. This will have a direct impact on the legality of the local cigarette industry, increased state revenues, and the sustainability of the Madura community's economy," said H. Fathor Rosi, Friday, February 27.

During the meeting, H. Fathor Rosi directly offered a tariff scheme for SKM taxes above Sigaret Kretek Tangan (SKT), with a range of Rp. 150 to Rp. 250 per stick. Currently, the SKT tax rate is recorded at Rp. 122 per stick.

According to him, the figure is not just a proposal without basis. He admitted that he had absorbed the aspirations of a number of cigarette entrepreneurs in Pamekasan, including plain cigarette business actors who had not yet obtained an official tax tape because of the high tariff.

"We told one of the plain cigarette entrepreneurs in Pamekasan. He is ready to pay the tax if the maximum SKM tariff is Rp. 250 per stick. If it is above that, he can't afford it," said Rosi.

H. Fathor Rosi is optimistic that if the tariff is implemented more realistically, small and medium-sized business actors will be encouraged to enter the legal system. The impact, the circulation of illegal cigarettes can be suppressed and the state's tax revenue has the potential to increase sustainably.

Data in the field shows the significant contribution of the Madura cigarette industry to state revenues. The target tax revenue imposed on Madura Customs is recorded at more than IDR 1.26 trillion.

"However, the realization exceeded the target to penetrate Rp1.7 trillion, driven by the contribution of tax-paying companies, including PR Cahaya Pro," he explained.

H. Fathor Rosi also explained the history of tax regulation in Indonesia, ranging from Law Number 1 of 1961 concerning Taxes to changes through Law Number 39 of 2005. He emphasized that tax rate adjustments are always carried out to increase state revenues while controlling consumption.

However, according to him, the policy needs to consider the actual conditions of regional business actors. He revealed that in 1999, the price of SKM was in the range of Rp. 225 per stick and SKT Rp. 150 per stick, a figure which he said showed a significant change in the production cost structure to date.

Rosi emphasized that a more adaptive tariff scheme is not merely a business interest, but an effort to expand the legal basis of the industry. He even opened the option of adjusting the production class, provided that the government provides a fair classification.

"Immediately implement a low tax tariff. Insya Allah, cigarette entrepreneurs in Madura are ready to use the Rp250 tape. We ask the government to consider Madura as an important part of this nation," he said.

Positive encouragement also came from the element of ulama Pamekasan. The caretaker of the Gunungsari Pond, Prappo, Pamekasan, KH. Kholil Muhammad. He assessed that the tobacco sector is the backbone of the economy of the Madurese people which must be managed with an equitable and sustainable approach.

"We, the ulama in Pamekasan, will continue to monitor this aspiration so that the plan to add a new layer of cigarettes gets the serious attention of the central government so that it can be realized immediately," said KH. Kholil Muhammad.

Meanwhile, the Owner of CV. Jawara International Djaya, H. Marsuto Alfianto, expressed his unconditional agreement with the idea conveyed by H. Fathor Rosi that the Minister of Finance Purbaya should immediately implement the cigarette layer.

"I agree with PR Cahaya Pro. Agree unconditionally," said Alfian.

Previously, Commission XI of the DPR stated that it had given a 'green light' regarding the government's plan through the Ministry of Finance to increase the tariff of the tobacco excise layer (CHT).

Chairman of Commission XI, Mukhamad Misbakhun, ensured that Parliament would accept the submission of plans for the creation and revision of rules that would accommodate this.

"So this, because the provisions must indeed be with the approval of Commission 11. The government will bring what the concept will be discussed. we have a meeting today as well. Can [be enacted as soon as possible]," he told reporters in Jakarta some time ago. ***