Indonesian consumer groups support e-cigarette tax

Indonesian consumer groups support e-cigarette tax

Tempo reported that the Indonesian Consumer Foundation (YLKI) expressed support for the recently implemented e-cigarette tax.

The new tax takes effect on January 1 and is designed in part to discourage e-cigarette use. According to the Global Adult Tobacco Survey, e-cigarette prevalence in Indonesia increased from 0.3% in 2011 to 3% in 2021. During the same period, the smoking rate among teenagers aged 13-15 increased by 19.2%.

Previously, the Indonesian National E-cigarette Association (Pavenas) asked the Ministry of Finance to postpone the implementation of taxes on e-cigarettes. Garindra Kartasasmita, secretary-general of the Indonesian Personal Vaporizer Association (APVI), said the combination of tax and excise tax hikes will hit entrepreneurs, consumers and industry players hard.

"This needs to be taken into consideration that the e-cigarette industry is a relatively new industry and most industry players are from the community and micro, small and medium enterprises," Garindra said in a statement before the levy.

Tulus Abadi, chairman of YLKI, dismissed claims from the e-cigarette industry that e-cigarettes can help smokers give up traditional cigarettes. "Instead, people will suffer double the health burden from using e-cigarettes," he said.
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