UNAIR NEWS – The government’s commitment to implement a policy of simplifying the layer (simplication) of cigarette excise tax faced a rejection. In response, the Economics Development Laboratory (LPEP) of Universitas Airlangga collaborated with Governor of East Java to hold a panel discussion on Wednesday, August 8 in Tirtodiningrat Campus B UNAIR.

The panel discussion from the LPEP this time was aimed to see the prospect of cigarette business because cigarette excise tax keeps increasing every year.

“Cigarette excise tax is very supportive of programs in East Java,” said Fatah Yasin, Assistant 2 for Development.

Fatah added, 80 Trillion of CUSTOMS from East Java in the Human Development Index rose 7.51%, calculated from 2010 to 2017. The largest spread of 16 million illegal cigarettes is East Java.

“The results of Pak Jay’s research as the Forum of Companies from Malang showed that the national tobacco stock is 60% from East Java, 5% are in Madura. And it is potentially spread in Madura, Pamekasan area, “he said.

Tobacco Excise Revenue Sharing Funds (DBHCHT) is one of the sources of funding that can be used to improve the quality of East Java’s economic growth.

Based on the Human Development Index (IPM), which is prioritized for development, education participation increases health status. 25% of 50% is used to cover health expenditures.

The small percentage of equitable income means that the purchasing power of the gross domestic population rises, with the East Java per-capita PDRB of 2008-2017 rose 204% while 2018-2019 is expected to rise 251%.

“The number of 2017 tobacco product workforce, 4.2 million people, have supported household members that reached 13.2 million people,” said Sulami Bahar from the Association of Cigarette Entrepreneurs (Gapero).

The increase in tobacco excise tax is always maintained above the level of inflation, economic growth and certain values ​​in order to reduce the affordabillity and consumption of tobacco. There is an increase in retail selling limits so the price of tobacco products in the market is not cheap as a form of consumption control in accordance with Article 2 of Excise Act.

“There will be a policy recommendation to the president about cigarette excise,” said Bambang Eko Affiatno, a research lecturer at LPEP FEB UNAIR. (*)

Author: Rolista Dwi Oktavia

Editor: Binti Q. Masruroh