Finance Minister Purbaya Yudhi Sadewa is confident that introducing a\nnew layer in the tobacco excise tariff structure will effectively curb\nthe circulation of illegal cigarettes.<\/p>\n
According to him, the policy could draw illegal cigarette\ndistribution into the legal ecosystem through excise payments at a\ncertain tariff. Perpetrators who continue to run illegal businesses will\nbe dealt with firmly.<\/p>\n
\u201cI am confident it will be effective in curbing illegal cigarettes.\nBecause I have already met the illegal cigarette traders. I told them I\nwould give them room. Once it is finalised, they can enter the new\nlayer. If you still mess around, I will come down hard,\u201d Purbaya said\nwhen met at the Parliament Complex in Jakarta on Thursday.<\/p>\n
To date, the government is still discussing the plan to implement the\nnew layer with the House of Representatives. The discussion will be held\nwith House Commission XI after deliberations on the 2027 State Budget\nDraft are completed.<\/p>\n
\u201cWe have not yet met with the DPR on that matter, Commission XI. We\nwill meet Commission XI after the budget is settled,\u201d he said.<\/p>\n
Regarding the potential for downtrading, or a shift in consumption to\ncheaper cigarettes, Purbaya said this depends on market conditions and\nconsumer preferences.<\/p>\n
He argued that illegal cigarettes are actually cheaper, so any shift\nin consumption resulting from excise policy needs to be viewed more\nbroadly.<\/p>\n
\u201cThat depends on the market, and people have their own tastes.\nIllegal cigarettes are even cheaper, so where would the downtrading go?\nWe are regulating it so they do not compete directly, so there is still\na sufficient gap,\u201d explained the State Treasurer.<\/p>\n
It was previously reported that Finance Minister Purbaya said the\ngovernment is seeking to implement an additional layer in the tobacco\nexcise tariff structure this year. However, the policy still requires\ndiscussion and joint approval with the House of Representatives.<\/p>\n
\u201cFor cigarette excise, we will try to implement it this year, after I\nspeak with parliament. We have not met yet, we have not had the time.\nAfter 17 August, we will meet with the DPR to confirm the tobacco\nexcise,\u201d Purbaya said last Friday.<\/p>\n
Customs and excise revenue in the 2027 State Budget Draft is targeted\nat Rp316.6 trillion, corrected by 1.2 percent compared with the 2026\nstate budget projection of Rp320.6 trillion.<\/p>\n
Meanwhile, tax revenue is targeted at Rp2,591.4 trillion, growing\n12.1 percent from the 2026 state budget projection of Rp2,310.8\ntrillion.<\/p>\n
Thus, the total tax revenue target is set at Rp2,908 trillion, up\n10.5 percent from the 2026 state budget projection of Rp2,631.4\ntrillion.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/purbaya-confident-new-excise-layer-will-effectively-curb-illegal-cigarette-circulation-1787835382", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }