Effectiveness of Customs Policy in Controlling Illegal Cigarette Circulation: A State Revenue Perspective
DOI:
https://doi.org/10.24905/icobis.v2i1.91Keywords:
Customs Policy, Illegal Cigarettes, Tobacco Excise, State Revenue, Law EnforcementAbstract
Illegal cigarette circulation poses a significant challenge to tobacco excise administration and the protection of state revenue in Indonesia. This study aims to examine the effectiveness of customs policy in controlling illegal cigarette circulation from a state revenue perspective. A descriptive qualitative approach was employed, with data collected through literature review, observation, and documentation. The analysis focused on the legal framework governing tobacco excise, the implementation of preventive supervision and repressive enforcement by the Directorate General of Customs and Excise, and the fiscal implications of enforcement activities. The findings indicate that customs policy is implemented through inspections, the seizure of illegal cigarettes, investigations, and legal action against violations of excise regulations. Data provided for the Customs and Excise Supervision and Service Office Type Madya Pabean C Tegal (KPPBC TMP C Tegal) for 2023–2025 indicate that enforcement activities were associated with approximately IDR 10 billion in potential tobacco excise revenue protected annually. This figure highlights the potential fiscal contribution of enforcement activities, although it should be distinguished from actual revenue collected by the state. Despite these efforts, illegal cigarette circulation remains a persistent challenge requiring continuous improvement in supervision, intelligence capabilities, inter-agency coordination, and regulatory compliance. This study emphasizes the importance of evaluating customs policy not only through enforcement outputs but also through its contribution to reducing illegal cigarette circulation and safeguarding sustainable state revenue.
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