Tobacco Excise Weak, March 2024 Customs and Excise Revenue Down

The Ministry of Finance (Kemenkeu) reported a 3.2% year-on-year (yoy) contraction in customs and excise duties revenue up to mid-March 2024. This is due to the sluggish receipt of excise duties on tobacco products.

Details show import duties amounted to Rp1.9 trillion from March 1-15, 2024, down from Rp2 trillion previously. Cumulatively from January to mid-March 2024, import duties collected reached Rp9.9 trillion, or 17.3% of the APBN target.

Import duties were driven by increased imports, the rupiah exchange rate against the US dollar, and increased receipts from major commodities such as rice and prefabricated buildings.

Meanwhile, export duties amounted to Rp0.5 trillion (Rp500 billion) as of March 15, 2024. This figure is essentially stagnant compared to the previous year. Cumulatively from January to March 2024, export duties reached Rp3.3 trillion, or 19% of the APBN target.

Export duties were influenced by copper export duties due to relaxed export policies. Furthermore, palm oil export duties decreased due to a 13.9% yoy decrease in average CPO prices and a 15.8% yoy decrease in export volume as of March 15, 2024.

Finally, excise duties amounted to Rp2.5 trillion as of March 15, 2024. This figure is slightly down from Rp2.6 trillion in 2023. Cumulatively from January to mid-March 2024, excise duties collected reached Rp43.3 trillion, or 17.6% of the APBN target.

The sluggish revenue is due to a 6.5% yoy decrease in excise duties on tobacco products, amounting to Rp41.7 trillion. This is due to low production and a change in payment patterns, with the due date shifting from early January 2024 to December 2023.

Excise revenue was also influenced by excise duties on MMEA and EA, amounting to Rp1.5 trillion and Rp28 billion respectively, in line with production growth.

(Also read: [State Revenue Down in March 2024, APBN Surplus Shrinks](https://databoks.katadata.co.id/datapublish/2024/03/26/pendapatan-negara-turun-maret-2024-surplus-apbn-menyusut))