According to a report by Kompas on December 29, the Indonesian government will officially impose consumption tax on e-cigarettes from January 1, 2024. This regulation clearly states that a 10% tobacco tax will also be levied on e-cigarette products.
The release of this new regulation has attracted the attention of entrepreneurs in the e-cigarette industry. The Indonesian e-cigarette business association Paguyuban Asosiasi Vape Nasional Indonesia (Pavenas) expressed regret over the government’s decision as they had previously requested the Ministry of Finance to postpone the implementation of e-cigarette taxes.
Garindra Kartasasmita, secretary-general of the Electronic Cigarette Enterprises Association, said in a statement on December 29: “Today, December 27, 2023, we were informed of the government’s decision to start from 2024 The e-cigarette tax will be implemented on January 1, 2020. This unilateral decision has a direct impact on our business operations, which is unacceptable to us. We have always complied with government regulations."
The implementation of the new regulations means that e-cigarette products will face two types of tax burdens, including tobacco taxes and additional excise taxes.
