Indonesian E-cigarette Industry Opposes Proposed Tax Increase

Regulations by 2FIRSTS.ai
Dec.14.2023
Indonesian E-cigarette Industry Opposes Proposed Tax Increase
Indonesian e-cigarette industry opposes proposed tax increase set for 2024, citing unfair treatment compared to traditional tobacco.

According to reports from Indonesian media outlet Bisnis, e-cigarette operators in Indonesia are opposing the proposed tax hikes set to be implemented in 2024. Garindra Kartasasmita, the Secretary General of the Indonesian Personal Vaporizer Industry Association (APVI), stated that the industry is already facing pressure from the 15% increase in consumption tax that is set to be enforced in 2023 and 2024.

 

The taxation on e-cigarettes amounts to nearly 30% when combined with tobacco tax," Galindra stated during a press conference. He argued that this is unfair for an emerging industry composed mainly of small and medium-sized enterprises.

 

Reference to Decree No. 192/2022 on the tobacco product consumption tax for e-cigarettes and other tobacco processing forms, the consumption tax for solid e-cigarettes (heated tobacco products) in 2023 is set at IDR 2886 per gram, while the consumption tax for open system e-cigarettes is set at IDR 532 per milliliter, and the consumption tax for closed system e-cigarettes is set at IDR 6392 per milliliter.

 

In 2024, the excise tax for solid e-cigarettes is set at 3,074 Indonesian Rupiah per gram, while the excise tax for open system e-cigarettes is set at 636 Indonesian Rupiah per milliliter. The excise tax for closed system e-cigarettes is set at 6,776 Indonesian Rupiah per milliliter.

 

Gardner added that there will be a five-year transitional period for taxing traditional cigarettes.

 

He also criticized the lack of involvement of domestic associations in the process of planning the implementation of e-cigarette taxes in 2024.

 

We hope that the policy-making process is open and transparent, particularly with the active engagement of influential industries," he urged.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

British American Tobacco France: A complete ban on tobacco-free nicotine pouches could drive the expansion of the black market
British American Tobacco France: A complete ban on tobacco-free nicotine pouches could drive the expansion of the black market
British American Tobacco (BAT) France expressed opposition to the government's plan to ban tobacco-free nicotine pouches in the National Assembly, arguing that a ban would foster a vibrant black market and harm public health and the protection of minors. The company also cited the examples of Sweden and New Zealand, which have reduced smoking rates through "clear regulations and strict controls," and proposed three policy recommendations: ban sales to minors, strictly regulate smokeless nicotine
Sep.26 by 2FIRSTS.ai
Bhutan Implements New Tax Framework to Combat Non-Communicable Diseases and Reduce Alcohol and Tobacco Consumption
Bhutan Implements New Tax Framework to Combat Non-Communicable Diseases and Reduce Alcohol and Tobacco Consumption
New tax framework aimed at reducing alcohol and tobacco consumption to tackle rising non-communicable diseases crisis in Bhutan.
Sep.04 by 2FIRSTS.ai
JT Launches Ploom AURA “Navy Blue” Edition with a Limited-Time Half-Price Offer
JT Launches Ploom AURA “Navy Blue” Edition with a Limited-Time Half-Price Offer
From Oct 14, JT will sell the Ploom AURA “Navy Blue” nationwide at convenience stores and select tobacco retailers; the starter kit will be ¥1,480 (down from ¥2,980) from Oct 13–Nov 9.
Oct.09
Belgium to Tighten Tobacco Controls in 2027: Vaping Banned on Café & Restaurant Terraces; Shisha Bars to Close
Belgium to Tighten Tobacco Controls in 2027: Vaping Banned on Café & Restaurant Terraces; Shisha Bars to Close
The Belgian government has announced a new round of tobacco-control measures: starting January 1, 2027, smoking traditional tobacco and using e-cigarettes will be banned on café and restaurant terraces, all designated indoor smoking rooms will be abolished, and shisha bars will be closed. The ban applies to both customers and operators; terraces must display no-smoking signage, and even placing ashtrays on tables will be subject to penalties.
Sep.16 by 2FIRSTS.ai
South African School Raid Uncovers 221 e-cigarettes, Marijuana, and Knives
South African School Raid Uncovers 221 e-cigarettes, Marijuana, and Knives
221 e-cigarettes, 7 bags of marijuana, and 10 knives were seized in a raid at a South African school.
Sep.12 by 2FIRSTS.ai
UK busts major illegal e-cigarette case involving 120,000 units; ringleader gets one year in prison
UK busts major illegal e-cigarette case involving 120,000 units; ringleader gets one year in prison
In 2024, UK trading standards uncovered a nationwide illegal e-cigarette supply operation. Business owner Amandeep Kukraja supplied nearly 120,000 illegal products nationwide and received a 12-month probation sentence plus forfeiture of over £300,000 in criminal proceeds.
Sep.12 by 2FIRSTS.ai