LANGSA, Waspada.co.id – Based on Minister of Finance Regulation Number 72 of 2024 concerning the Use of Profit Sharing Funds (DBH) for Excise on Tobacco Products (CHT), which was then promulgated by the Ministry of Law and Human Rights on 18 October 2024, State Gazette of the Republic of Indonesia 2024 Number 762, is regulated that there are three points for using DBH CHT by local governments:
1. 50 percent in the Community Welfare Sector
• Raw Material Quality Improvement Program
• Industrial Construction Program.
• Social Environmental Development Program
2. 10 percent in the Law Enforcement Sector
• Industrial Construction Program
• Socialization Program for Provisions in the Excise Sector
• Illegal BKC Eradication Program
3. 40 percent Health Sector
• Social Environmental Development Program.
This regulation replaces the Minister of Finance Regulation Number 215/PMK.07 /2021 concerning the Use of Monitoring and Evaluation of Tobacco Excise Revenue Sharing Funds, State Gazette of the Republic of Indonesia of 2021 Number 1513.
Written information from Langsa Customs and Excise received on Friday (22/11), Head of the Customs and Excise Facilities Division of the Regional Office (Kanwil) of the Directorate General of Customs and Excise in Aceh, Leni Rahmasari, explained that the Profit Sharing Fund (DBH) was part of the transfer to regions are allocated based on a percentage of certain income in the State Revenue and Expenditure Budget and certain performance, which is distributed to producing regions with the aim of reducing fiscal inequality between the government and regions, as well as to other non-producing regions, in the context of overcome negative externalities or increase equality in one region.
“Profit Sharing Funds from excise taxes on tobacco products are a form of government effort to overcome negative externalities or health impacts resulting from the consumption of excisable goods made from tobacco products,” explained Leni Rahmasari.
Currently there are three types of tax DBH in Indonesia, including DBH Land and Building Tax, DBH Income Tax and DBH CHT.
“In accordance with the mandate of Law Number 39 of 2007 concerning Amendments to Law Number 11 of 1995 concerning Excise, that DBH CHT is used to fund improvements in the quality of raw materials, industrial development, social environmental development, socialization of provisions in the field of excise, or eradication of subject goods. “illegal excise,” explained Leni.
Leni also invited the public to fight illegal cigarettes and monitor excise revenues. This is because a portion of excise revenue from tobacco products is returned to the community, the amount of which has been determined based on the applicable provisions through the DBH CHT scheme. The size of the CHT DBH depends on the excise revenue from tobacco products in the area.
“There are benefits that can be received by the community from the imposition of excise on tobacco products, so we need to jointly monitor excise revenues from tobacco products,” said Leni.
In the last three years, the Aceh Customs and Excise Regional Office has succeeded in thwarting attempts to smuggle illegal cigarettes into the Aceh region.
“The number of actions taken against illegal cigarettes has increased from year to year. “The Aceh Customs and Excise Regional Office recorded that 3.5 million illegal cigarettes were thwarted in 2022, then in 2023 as many as 14.3 million illegal cigarettes were thwarted, and from January to October 2024 as many as 21.5 million illegal cigarettes were thwarted,” explained Leni.
Preventive and repressive efforts need to continue to be carried out in the fight against illegal cigarettes. Apart from law enforcement, community participation is also needed in fighting the circulation of illegal cigarettes in Indonesia. The large number of attempts to smuggle illegal cigarettes can occur partly because of domestic consumer demand.
“We need joint efforts with the community to reduce illegal cigarettes. “Consuming illegal cigarettes not only damages health, but is also very detrimental to society because there are no external costs that can be utilized from consuming illegal cigarettes,” explained Leni.
The need for community participation in supporting the government to combat the distribution of illegal cigarettes. Some of the characteristics of illegal cigarettes that can be recognized by the public include cigarettes that have fake excise stamps attached to them, do not have excise stamps attached to them, have excise stamps attached that are not their own or are mispersonalized, have excise stamps that are wrongly intended for use, or have used excise stamps attached to them in circulation or places. retail sales.
“Let’s fight illegal cigarettes together! Report immediately if you find illegal cigarettes to the nearest Customs Office, and don’t consume illegal cigarettes!” concluded Leni. (wool/rid/d1)
Editor: Rizki Palepi
What are the main goals of the new tobacco excise funding guidelines introduced in the recent Minister of Finance Regulation Number 72 of 2024?
Interview: Time.news Editor Talks with Leni Rahmasari on New Tobacco Excise Funding Guidelines
Editor: Welcome, Leni Rahmasari, Head of the Customs and Excise Facilities Division of the Regional Office in Aceh. Thank you for joining us today to discuss the recent regulation on the use of Profit Sharing Funds from tobacco excise.
Leni Rahmasari: Thank you for having me. I’m pleased to be here to share insights on this important topic.
Editor: The new Minister of Finance Regulation Number 72 of 2024 has shifted how local governments can use these Profit Sharing Funds. Can you break down the three main allocations for us?
Leni Rahmasari: Certainly! The regulation stipulates that 50% of the funds will go towards the Community Welfare Sector. This includes programs for improving raw material quality, industrial construction, and social environmental development. The second allocation is 10% for the Law Enforcement Sector, which supports the industrial construction program, socialization in the excise sector, and illegal goods eradication. The remaining 40% is earmarked for health-related initiatives, specifically focusing on social environmental development.
Editor: This approach seems to aim for a holistic improvement of various sectors within local communities. What’s the rationale behind these specific allocations?
Leni Rahmasari: The primary goal is to address the negative externalities and health impacts associated with tobacco consumption while also promoting economic development. By directing funds to these sectors, we can help reduce fiscal inequality between producing and non-producing regions and improve overall community welfare.
Editor: You mentioned the role of DBH CHT funds in reducing fiscal inequality. Can you elaborate on that?
Leni Rahmasari: Absolutely. The Profit Sharing Funds are designed to provide a financial boost to regions that produce tobacco. This not only helps them manage the social and health consequences associated with tobacco use, but it also empowers them to develop their infrastructure and enhance their quality of life. By redistributing a portion of these funds, we strive to create a more equitable financial landscape across the nation.
Editor: What have been some of the impacts of the previous regulations, particularly in combating illegal tobacco trading?
Leni Rahmasari: Over the past three years, we’ve seen a significant increase in our efforts to thwart illegal cigarette smuggling in Aceh. For instance, in 2022 alone, we confiscated 3.5 million illegal cigarettes, and this number ballooned to 14.3 million in 2023. As of October 2024, we are on track to continue this trend, making strong strides against illegal trade, which not only harms public health but also affects local economies.
Editor: It sounds like a coordinated effort. How can the public assist in combating the illicit trade of tobacco products?
Leni Rahmasari: Community vigilance is crucial. We encourage the public to report illegal tobacco products and closely monitor excise revenue. It’s also essential for everyone to understand that part of the excise revenue goes back to the community through programs funded by DBH CHT. This creates a vested interest in ensuring the integrity of the tobacco market.
Editor: Looking forward, what would you say are the next steps for local governments as they adapt to these new regulations?
Leni Rahmasari: Local governments need to develop actionable plans to utilize these funds effectively, ensuring they align with the community’s needs. Additionally, continuous monitoring and evaluation of the programs funded by DBH CHT will be crucial to measure their impact and make necessary adjustments.
Editor: Thank you, Leni. It’s evident that the implementation of these regulations has far-reaching consequences for community welfare and health sectors, alongside the critical fight against illegal tobacco trade.
Leni Rahmasari: Thank you for having me. I appreciate the opportunity to discuss this vital issue, and I look forward to seeing how these changes positively impact our communities.
Editor: We appreciate your insights! We hope to keep our audience informed on these important developments as they unfold.
Leni Rahmasari: Thank you, and I’m happy to return anytime for further discussions!