Excise Revenue Is Not Expected To Experience Significant Change Amid Political Year 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - The Director General of Customs and Excise at the Ministry of Finance Askolani estimates that state revenues in the form of excise will not experience significant changes, either an increase or a decrease, in the midst of the General Election in 2024.

"Hopefully it doesn't change much (state revenue). The problem is that we usually know that excise revenues depend on tariff policies and product production that are subject to excise duty," said Askolani after the release of Indonesia's Pentavalen Vaccine Assistance for Nigeria in Tangerang, quoted from Antara, Monday, May 29.

The estimated state revenue, including the excise tariff policy in 2024, will be discussed with the House of Representatives (DPR) before it is stipulated in the 2024 State Budget and Revenue Draft Law (RAPBN).

"We will follow the DPR mechanism. We will discuss it in the 2024 State Budget Law for certainty," he said.

Although the cigarette excise rates for 2023 and 2024 have been set at 10 percent in 2022, the provisions regarding the possibility of changing excise rates will still be discussed with the DPR.

"Legally and regulatory provisions, we still have to discuss and obtain the DPR's provisions," he said.

Meanwhile, the excise-related policy which will be implemented in 2025-2026 will only begin to be decided in 2024.

"We will manage the implementation and will continue to monitor it," he said.

Previously, the Ministry of Finance noted that revenue from customs and excise during January to April 2023 reached IDR 94.5 trillion, down 12.8 percent on an annual basis.