Acceptance Of Cigarette Excise In Kudus, Central Java Reaches IDR 25.7 Trillion Until The Third Quarter Of 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - The Customs Supervision and Service Office (KPPBC) Type Madya Kudus, Central Java, noted that excise revenues until the third quarter of 2023 reached IDR 25.7 trillion or 64.6 percent of the revenue target of IDR 39.8 trillion.

"We will try to meet the target until the end of the year," said Head of the KPPBC Information Extension and Service Section of the Madya Excise Type Kudus Sandy Hendratmo Sopan in Kudus, Central Java, quoted from Antara, Thursday, October 12.

Moreover, he said, every year there is a surge in payments because there is a non-fiscal stimulus program in the form of delaying excise payments and increasing demand for cigarette excise stamps.

However, Sandy admitted that meeting the target of cigarette excise revenue there were indeed several obstacles.

Among other things, due to reduced consumption of cigarettes. However, this is also in line with the expectations of imposition of excise to control consumption.

Another factor is the switching of cigarette consumption from machine kretek cigarettes (SKM) to hand-kretek cigarettes (SKT), so that the excise value decreases, due to the difference in the imposition of SKM excise rates higher than SKT.

In addition, he said, the transfer of cigarette consumption from SKM to e-cigarettes has a lower excise rate.

"Not to mention the switch of a number of people to illegal cigarettes which are considered cheaper and without paying excise rates," he said.

Regarding the circulation of illegal cigarettes, KPPBC Kudus is aggressively taking action in its working areas starting from Jepara, Kudus, Rembang, Pati and Blora Regencies.

This also supports efforts to increase excise income because illegal cigarette share can be used by legal cigarettes.