What Are Cigarette Tax Returns (SPPR)?

The government has recently issued the Minister of Finance Regulation No. 143/2023 concerning Procedures for the Collection, Withholding and Remittance of Cigarette Tax. Through the regulation, the government imposes a cigarette tax on e-cigarettes. See What’s the Difference Between Cigarette Excise and Cigarette Tax?

Taking effect as of 22 December 2023, the regulation also stipulates Cigarette Tax Returns. As such, what are Cigarette Tax Returns?

Referring to Article 3 paragraph (1) of MoF Reg. 143/2023, a Cigarette Tax Return (Surat Pemberitahuan Pajak Rokok, hereinafter referred to as SPPR) is a letter used by a cigarette taxpayer to file the calculation and/or payment basis of cigarette tax.

A cigarette taxpayer refers to a manufacturer of cigarettes/producer and importer of cigarettes that has a permit in the form of an excisable goods entrepreneur identification number (nomor pokok pengusaha barang kena cukai, hereinafter referred to as NPPBKC).

Pursuant to the provisions under Article 3 paragraph (1) of MoF Reg. 143/2023, cigarette taxpayers must self-assess cigarette tax payable. The cigarette tax resulting from the calculation is outlined in the SPPR.

Cigarette taxpayers must also file the SPPR to the Head of the Customs and Excise Office together with CK-1 documents. The SPPR is to be filed through an application system in the field of excise

In the event of disruptions, however, the SPPR is filed in writing through the Customs and Excise Office. The SPPR filed in writing must be prepared as per the sample format in letter B of the Appendix of MoF Reg. 143/2023.

Next, customs and excise officials verify the SPPR that has been filed. The verification of the SPPR includes: the completeness and correctness of the completion of the SPPR; the conformity between the SPPR documents and CK-1 documents; and the correctness of the calculation of cigarette tax.

If the SPPR is declared complete, conforming and correct, customs and excise officials will provide a registration number to the cigarette taxpayers. Further, cigarette taxpayers that have obtained the registration number pay cigarette tax simultaneously with the payment of cigarette excise to the general treasury account (rekening kas umum negara, hereinafter referred to as RKUN).

Cigarette tax is paid through the collecting agent using a billing code. The said billing code will be issued by the Directorate General of Customs and Excise (DGCE) through the biller portal.

Cigarette taxpayers that have paid cigarette tax will subsequently be given a state revenue (bukti penerimaan negara, hereinafter referred to as BPN). The BPN must be submitted to customs and excise officials for the verification of the payment of cigarette tax.

In further detail, the verification of the payment of cigarette tax includes: the completeness and correctness of the BPN; the data conformity between the SPPR and BPN; and the correctness of the calculation and the conformity between the amount of cigarette tax outlined in the SPPR and the amount of remitted money.

If the results of the verification of the SPPR and BPN conform, the customs and excise officials shall continue processing the application for tax stamp orders (CK-1). (rig)