Government intensifies drive to boost excise revenue<\/p>\n
Urip Hudiono, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Finance has teamed up with the National Police to
\ncrack down on the practice of counterfeiting excise seals on
\ncigarette packs, which last year caused state losses estimated at
\nRp 150 billion (US$15 million).<\/p>\n
The finance ministry's Director General of Customs and Excise
\nEddy Abdurrachman said on Wednesday his office and the police had
\nagreed to form a task force to crack down on the offense.<\/p>\n
\"We have found cigarettes being sold using counterfeit excise
\nseals -- some bearing no seals at all -- as well as cigarettes
\nwith inappropriate seals, such as those that are labeled with 4
\npercent seals when they are supposed to be using 26 percent
\nones,\" he said.<\/p>\n
Eddy was speaking after a meeting with National Police chief
\nSutanto, Minister of Finance Jusuf Anwar and Minister of Industry
\nAndung Nitimihardja, which was attended also by officials from
\nthe State Intelligence Agency (BIN) and the governors of Central
\nJava and East Java, Mardiyanto and Imam Utomo -- the heads of two
\nmain cigarette-producing provinces where counterfeiting was
\nwidespread.<\/p>\n
\"The task force will be expected to enforce excise laws to
\nimprove the cigarette industry's compliance with regulations, to
\noptimize state excise revenues, and most importantly, to prevent
\ncigarette producers from getting involved in counterfeiting,\"
\nEddy said.<\/p>\n
Eddy said estimated about 10 billion cigarette packs priced
\nbetween Rp 2,900 and Rp 3,300 (33 U.S. cents), were supposed to
\nbear excise seals between 4 and 8 percent last year.<\/p>\n
\"The counterfeiting mostly involved small-scale cigarette
\nproducers, amounting to some 5 percent of last year's cigarette
\nproduction,\" he said. \"The Indonesia Cigarette Producer Union
\n(Gappri), however, has said it believes the numbers are higher.\"<\/p>\n
Data from Gappri shows that cigarette sales in the country
\nreached 211 billion sticks last year. The country's largest
\ncigarette producers are Gudang Garam, Sampoerna, and Djarum, with
\nclove cigarettes the top-selling flavor.<\/p>\n
The government raised cigarette retail prices -- on which
\nexcise tariffs are based -- by 15 percent in July, in an effort
\nto boost state revenues and discourage smoking among the
\ncountry's 210 million population. Surveys show about 70 percent
\nof people over the age of 18 are estimated to be smokers.<\/p>\n
State revenues from excises as of Aug. 15 reached Rp 19.4
\ntrillion (US$1.9 billion), up 16 percent from the same period
\nlast year.<\/p>\n
The government has earmarked a total of Rp 31.4 trillion
\nprojected excise revenues in this year's revised state budget,
\nbut is hoping to reap in as much as Rp 33.4 trillion. State
\nexcise revenues are targeted to increase again to Rp 36 trillion
\nnext year.<\/p>\n
Commenting on the establishment of the task force, Sutanto
\nsaid the police were ready to crack down on all producers
\ninvolved in counterfeiting, including major cigarette firms.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-intensifies-drive-to-boost-excise-revenue-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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