Tobacco Excise Revenue Realization Increased by 3.67% in 2020

Tobacco excise tax remains a major contributor to state revenue from excise duties. The Central Government Financial Report (LKPP) states that government revenue from excise duties amounted to Rp 185.9 trillion in 2020. This figure increased by 2.7% from the previous year's achievement of Rp 181 trillion.

Details show that state revenue from tobacco excise tax amounted to Rp 179.83 trillion in 2020. This figure increased by 3.67% from the previous year's achievement and contributed 96.74% of total state excise revenue. The increase in tobacco excise tax was due to a shift in revenue from 2019 and an increase in cigarette excise rates.

Next, excise revenue from alcoholic beverages amounted to Rp 5.76 trillion. This figure decreased by 21.5% from the previous year, in line with the decline in sales of beverages containing ethyl alcohol due to the implementation of community activity restrictions to curb the spread of the Covid-19 virus, especially in entertainment venues.

Then, revenue from ethyl alcohol excise tax amounted to Rp 241.79 billion in 2020, surging 97.35% from the previous year. This increase was triggered by the increased demand for alcohol as a raw material for disinfectant production due to the pandemic.

Excise revenue from administrative fines decreased by 30.04% to Rp 52.49 billion last year compared to the previous year. Similarly, other excise revenue decreased by 22.35% to only Rp 12.11 billion.

In the State Revenue and Expenditure Budget (RAPBN) draft, the government targets an 11.92% increase in excise revenue to Rp 203.92 trillion in 2022 from Rp 182.2 trillion in 2021 (outlook). This excise revenue contributes 13.96% of the total tax revenue of Rp 1.47 quadrillion next year.