The Ministry of Finance has officially stipulated the breakdown of revenue sharing fund (Dana Bagi Hasil/DBH) of tobacco products excise (Cukai Hasil Tembakau/CHT) that will be distributed to local governments, both provinces and regencies/cities for the 2021 fiscal year.

Details of the CHT DBH distributed to each regional government are outlined in the Minister of Finance Regulation No. 230/PMK.07/2020 concerning Details of Revenue Sharing Fund of Tobacco Products Excise by Provinces/Regencies/Cities for the 2021 Fiscal Year (MoF Reg. 230/2020).

The regulation, signed on 30 December 2020, states that the total DBH CHT distributed to local governments in 2021 will amount to IDR3.47 trillion. This figure tends to be stagnant compared to the stipulation of the DBH CHT in 2020 of IDR3.46 trillion.

In further detail, the majority of the DBH CHT will be granted to the provincial and district/city governments in East Java, totalling IDR1.93 trillion or 55.6% of the total national DBH CHT. Out of the total CHT DBH of IDR1.93 trillion, the East Java Provincial Government is to receive an allocation of IDR581.36 billion.

The remaining CHT DBH of IDR1.35 trillion, on the other hand, will be distributed to city and district governments as per their respective allocations. Further, Pasuruan Regency constitutes the regency/city to receive the largest CHT DBH in 2021, i.e. an allocation of DBH CHT of IDR200.44 billion.

Promulgated on 30 December 2020, this Ministerial Regulation has come into force thereafter. The enactment of PMK 230/2020 simultaneously revokes 16 minister of finance regulations related to the breakdown of revenue sharing funds of tobacco products excise by province/regency/city in the previous fiscal year.

Allocation of 2021 Revenue Sharing Fund of Tobacco Products Excise