According to Indonesian news network JawaPos, discussions on taxing e-cigarettes in 2024 have aroused opposition in the Indonesian industry. Some believe this will further burden emerging industries dominated by micro, small and medium enterprises (UMKM).
In addition, the industry believes that the plan to tax e-cigarettes has no solid legal basis and instead shows the injustice of the government. Garindra Kartasasmita, secretary-general of the Indonesian Personal Atomizer Association (APVI), said that the implementation of the tax on e-cigarettes in 2024 lacks sufficient social publicity, which has brought difficulties to business operators. burden.
According to Galindra, the e-cigarette industry is still feeling the pressure from a 15% increase in tobacco tax rates in 2023 and 2024.
"Especially if the 10% cigarette tax is added to the tax, e-cigarettes will face a tax increase of nearly 30%. This is unfair and causing distress to the emerging industry, the majority of which are UMKM practitioners," Galinder said La Karthasasmita.
Galindra explained that according to Article 33 of Act No. 1 of 2022, regarding the fiscal relationship between the central government and local governments, the objects of the tobacco tax include cigarettes, cigars, tobacco leaves and other tobacco products.
"E-cigarettes come in different shapes and work and produce different products. This makes us question why we are considered other tobacco products (and therefore subject to cigarette tax)," said Galindra Karthasmita .
Galindra hopes that the government, and in this regard the Directorate General of Financial Balance (DJPK) in particular, will be more impartial in the implementation of e-cigarette taxes. When traditional cigarettes were taxed, a five-year transition period was given.
“When the tobacco tax was first implemented in 2014, there was no increase in the tax rate or a transition period to prevent the three shocks of tobacco tax, retail price (HJE) and tobacco tax, which greatly affected the retail price and thus reduced consumption. purchasing power,” Galindra Karthasmita added.
In fact, APVI hopes that policy development can be conducted in an open and transparent manner, especially for affected industry practitioners. Galindra Kartasasmita regretted that APVI has never been invited to participate in the communication on the e-cigarette tax implementation plan so far. Especially with the sudden implementation of this tobacco tax planned for 2024.
"This will severely hit the entire e-cigarette and vaping industry. We oppose the implementation of a tax on e-cigarettes in 2024 because of the lack of social publicity. This sudden and uncommunicated policy is very unreasonable and unacceptable," Galin said Dra Karthasmita.
