Cigarette Tax Contribution to Regional Taxes

Oct 13, 2025 by talynt.org 22 views

Contribution of Cigarette Tax Revenue to Regional Tax & Regional Original Revenue (PAD) of North Sumatra Province in 2017-2020 (Study at the Regional Tax and Retribution Management Agency of North Sumatra Province)

Introduction

The implementation of cigarette taxes has become a crucial aspect of regional revenue collection in Indonesia. As a levy imposed on cigarette excise collected by the local government, cigarette taxes have been in effect since January 1, 2014, in accordance with Article 181 of Law Number 28 of 2009 concerning Regional Taxes and Regional Levies. The purpose of this study was to evaluate the targets and realization of cigarette tax revenue in North Sumatra Province during the 2017 to 2020 period, as well as to assess the contribution of cigarette taxes in increasing the Regional Original Revenue (PAD) and the Regional Tax of North Sumatra Province.

Background

Cigarette taxes are a significant source of revenue for local governments in Indonesia. The revenue generated from cigarette taxes can be utilized for various development and public services, such as infrastructure, education, and health. However, the implementation of cigarette taxes also poses challenges, including changes in community behavior in consuming cigarettes, local government policies that support tax collection, as well as economic conditions that can affect people's purchasing power.

Research Methodology

This study uses a descriptive method with a qualitative approach, which is useful for analyzing the contribution of cigarette taxes to local tax revenue and PAD. The data used includes primary data obtained from interviews and secondary data collected through documentation. Through this data collection technique, researchers try to get a comprehensive picture of cigarette tax revenue in the region.

Research Result

The results of the analysis showed that the target and realization of cigarette tax revenue in North Sumatra Province from 2017 to 2020 could not always achieve the targets set every year.

Cigarette Tax Contribution to Regional Taxes

2017: 17.4%
2018: 15.7%
2019: 15.7%
2020: 20.9%

The Contribution of Cigarette Taxes to Regional Original Revenue (PAD)

2017: 15.7%
2018: 14.0%
2019: 13.8%
2020: 19.1%

Analysis and Explanation

From these data, it can be seen that there is a fluctuation in the contribution of cigarette taxes to local taxes and PAD. In 2020, there was a significant increase that showed an increase in awareness of the importance of cigarette taxes as a source of regional income.

This fluctuation can be influenced by several factors, including changes in community behavior in consuming cigarettes, local government policies that support tax collection, as well as economic conditions that can affect people's purchasing power.

The Importance of Cigarette Taxes

The importance of cigarette taxes as a source of regional income is very relevant, especially in the midst of government efforts to increase local revenue. This tax revenue can be utilized for various development and public services, such as infrastructure, education, and health.

Conclusion

Overall, cigarette taxes made a significant contribution to local taxes and PAD in North Sumatra Province during 2017-2020. Although there are challenges in achieving the target set, an increase in 2020 shows the potential of cigarette taxes that can be optimized further. Local governments need to continue to conduct socialization and law enforcement related to cigarette taxes so that this revenue can continue to increase and contribute to regional development.

Recommendations

Based on the findings of this study, the following recommendations are made:

Continued Socialization and Law Enforcement: Local governments need to continue to conduct socialization and law enforcement related to cigarette taxes to increase awareness and compliance among the public.
Optimization of Cigarette Tax Revenue: Local governments need to optimize cigarette tax revenue by implementing effective tax collection and management systems.
Increased Allocation of Cigarette Tax Revenue: Local governments need to increase the allocation of cigarette tax revenue for development and public services, such as infrastructure, education, and health.

By implementing these recommendations, local governments can continue to increase cigarette tax revenue and contribute to regional development.
Frequently Asked Questions (FAQs) about Cigarette Tax Revenue in North Sumatra Province

Q: What is the purpose of cigarette taxes in North Sumatra Province?

A: The purpose of cigarette taxes in North Sumatra Province is to generate revenue for the local government, which can be utilized for various development and public services, such as infrastructure, education, and health.

Q: How much is the contribution of cigarette taxes to Regional Taxes in North Sumatra Province?

A: According to the data, the contribution of cigarette taxes to Regional Taxes in North Sumatra Province is as follows:

2017: 17.4%
2018: 15.7%
2019: 15.7%
2020: 20.9%

Q: How much is the contribution of cigarette taxes to Regional Original Revenue (PAD) in North Sumatra Province?

A: According to the data, the contribution of cigarette taxes to Regional Original Revenue (PAD) in North Sumatra Province is as follows:

2017: 15.7%
2018: 14.0%
2019: 13.8%
2020: 19.1%

Q: What are the factors that influence the fluctuation in cigarette tax revenue in North Sumatra Province?

A: The factors that influence the fluctuation in cigarette tax revenue in North Sumatra Province include changes in community behavior in consuming cigarettes, local government policies that support tax collection, as well as economic conditions that can affect people's purchasing power.

Q: Why is the contribution of cigarette taxes to Regional Taxes and PAD in North Sumatra Province increasing?

A: The contribution of cigarette taxes to Regional Taxes and PAD in North Sumatra Province is increasing due to an increase in awareness of the importance of cigarette taxes as a source of regional income.

Q: What are the recommendations for local governments to optimize cigarette tax revenue in North Sumatra Province?

A: The recommendations for local governments to optimize cigarette tax revenue in North Sumatra Province include:

Continued Socialization and Law Enforcement: Local governments need to continue to conduct socialization and law enforcement related to cigarette taxes to increase awareness and compliance among the public.
Optimization of Cigarette Tax Revenue: Local governments need to optimize cigarette tax revenue by implementing effective tax collection and management systems.
Increased Allocation of Cigarette Tax Revenue: Local governments need to increase the allocation of cigarette tax revenue for development and public services, such as infrastructure, education, and health.

Q: What are the benefits of increasing cigarette tax revenue in North Sumatra Province?

A: The benefits of increasing cigarette tax revenue in North Sumatra Province include:

Increased Revenue: Increasing cigarette tax revenue can provide additional funds for local governments to support development and public services.
Improved Public Health: Increasing cigarette tax revenue can also contribute to improved public health by reducing the number of smokers and promoting a healthier lifestyle.
Economic Growth: Increasing cigarette tax revenue can also contribute to economic growth by creating jobs and stimulating economic activity.

By understanding the FAQs about cigarette tax revenue in North Sumatra Province, readers can gain a deeper understanding of the importance of cigarette taxes as a source of regional income and the benefits of increasing cigarette tax revenue.