According to a report from Pikiran-Rakyat on May 17th, the Intermediate Customs Supervision and Service Office in Madya Kudus, Central Java, Indonesia, destroyed 11,249,900 illegal cigarettes that had been seized by customs officials. The value of the cigarettes was approximately 1.41 billion Indonesian rupiah ($88,229).
The district government secretary, Edy Sujatmiko, commended the Kudus Customs for their efforts in combating illegal cigarette activities.
The circulation of illegal cigarettes has impacted the country's revenue, particularly in the taxation sector.
He emphasized that the national revenue obtained through taxes is crucial for improving public welfare through the distribution of funds from the Tobacco Product Tax Allocation Fund (DBHCHT).
He further pointed out: "This year, Yapala County received a grant of 1.41 billion Indonesian Rupiah (882,297 US dollars) from DBHCHT. Of this, 50% will be used to improve public welfare, 40% will be invested in the health sector, and the remaining 10% will be used for public awareness and law enforcement.
Hannan Budiharto, Director of Customs in Central Java Province, stated that the revenue target faced by the Kudus Customs in 2024 is 4.4 billion Indonesian Rupiah (275,326 USD). This figure is the largest among the customs offices in Central Java and Yogyakarta regions.
Tax revenue will be returned to the regions in the form of DBHCHT. Kudus County received 20 billion Indonesian Rupiah (equivalent to 1251,486 USD), the highest amount. To receive more, legal cigarette factories should expand.
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