DGT Arrests PT SMS Executive for Evading Rp1.8 Billion in Tobacco Tax

The Regional Office of the Directorate General of Taxes (Kanwil DJP) for East Java I has arrested a PT SMS executive, identified as S alias TBH, for manipulating the collection of Value Added Tax on Tobacco Products (PPN-HT). The tax crime suspect was handed over by Kanwil DJP East Java I to the Tanjung Perak District Prosecutor’s Office on Tuesday (2/6/2026) along with the evidence, marking the start of the prosecution phase. “This law enforcement action serves as a warning to business operators to consistently fulfil their tax obligations in accordance with applicable regulations and not resort to illegal means to evade tax,” said Head of Kanwil DJP East Java I Max Darmawan, quoted from a written statement on Friday (5/6/2026). The modus operandi involved suspect S committing tax crimes through PT SMS during the ordering of excise stamps to be affixed to cigarette packaging produced by the company using form CK-1. The excise stamp ordering document (CK-1) contains a calculation of the excise duty paid and the Value Added Tax on Tobacco Products. Suspect S only paid and reported a small fraction of the PPN-HT that should have been paid on the excise stamp orders in the VAT returns for the period January 2017 to December 2018. Based on preliminary evidence examination and investigation conducted by Civil Servant Investigators from Kanwil DJP East Java I, these actions caused a loss of state revenue amounting to Rp1.8 billion. Kanwil DJP East Java I confirmed that this legal process was carried out through intensive synergy between the Civil Servant Investigators of Kanwil DJP East Java I and the East Java High Prosecutor’s Office, under the supervision of the Civil Servant Investigator Coordinator from the East Java Regional Police. Following a series of investigations and a review of the completeness of the case file, the case was finally declared complete and has now been officially transferred to the prosecution stage. “The DGT will continue to strengthen synergy with law enforcement officials to ensure that every tax violation is dealt with according to the legal corridor, while simultaneously encouraging voluntary compliance and protecting state revenue,” Max stated.