Indonesia's E-Cigarette Industry Opposes Tax Reform Implementation

Regulations by 2FIRSTS.ai
Jan.08.2024
Indonesia's E-Cigarette Industry Opposes Tax Reform Implementation
Indonesian e-cigarette industry opposes government's plan to implement tax reform in 2024 due to rising cigarette taxes and retail prices.

According to a report by Liputan6.com on January 8th, the Indonesian Ministry of Finance released a regulation on December 29th, 2023, regarding the reform of e-cigarette taxes, which is planned to be implemented on January 1st, 2024. However, this policy has faced strong opposition from the industry, primarily due to the Ministry of Finance's decision to simultaneously increase cigarette taxes and retail prices in 2024.

 

Previously, the e-cigarette industry had already dealt with the pressure brought by a 15% increase in tobacco taxes and retail price hikes. This time, e-cigarette tax reform has become the third major blow this industry has faced in 2024. Businessmen have been demanding a postponement of tax adjustments on e-cigarettes to cope with the impact of these three tax increases.

 

Businessmen in the e-cigarette industry have raised complaints, stating that they were caught off guard by the announcement of e-cigarette tax reform. This is because in early December, they had already placed orders for tobacco labels required for 2024, following the procedures outlined by the General Directorate of the Indonesian Ministry of Finance.

 

This sudden policy change has sent shockwaves throughout the industry, particularly against the backdrop of steep increases in tobacco taxes and retail prices. Business owners are urging the government to reconsider this policy and delay the implementation of e-cigarette tax adjustments. This tax reform represents yet another significant transformation for the e-cigarette industry in less than a year.

 

The Indonesian National e-Cigarette Association (PAVENAS) has stated that this policy has had a significant impact on the industry, as there has been insufficient community outreach, tight response time, and financial implications for businesses.

 

Garindra Katasamita, Secretary General of the Indonesian Personal E-Cigarette Association (APVI), representing PAVENAS, expressed deep disappointment over the rushed and opaque decision-making process of the Indonesian Ministry of Finance, which failed to consider feedback from affected industries. This has led us to urge them to reconsider this policy and postpone the implementation of the tobacco tax reform.

 

According to Galindra, the government's sudden announcement regarding the e-cigarette tax reform for 2024 during a community outreach event on December 27th has taken the Indonesian National E-Cigarette Association (PAVENAS) by surprise.

 

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

Report Says Teen e-cigarette use on the rise, with majority of sales coming from disposable products
Report Says Teen e-cigarette use on the rise, with majority of sales coming from disposable products
Monitoring a Changing Tobacco Product Market in the United States is the second annual review from the Monitoring Tobacco Product Use project, analyzing retail scanner data from January 2019 to December 2024 and TEEN+ survey data.
Jan.07 by 2FIRSTS.ai
Tajikistan Signals Plan to Ban Use, Production and Circulation of E-Cigarettes
Tajikistan Signals Plan to Ban Use, Production and Circulation of E-Cigarettes
According to Kazinform, Tajikistan addressed the issue of electronic cigarettes during the fourth session of the Majlisi Milli, stating a position to prohibit the use, production, and circulation of e-cigarettes. Chairman Rustam Emomali emphasized that the position aims to protect public health and prevent negative impacts on youth and adolescents.
Dec.16 by 2FIRSTS.ai
Nicaragua’s Health Ministry reaffirms Resolution No. 334-2021, maintaining a total ban on vaping and e-cigarette sales
Nicaragua’s Health Ministry reaffirms Resolution No. 334-2021, maintaining a total ban on vaping and e-cigarette sales
Nicaragua’s Ministry of Health (MINSA) issued an official statement on January 2, 2026 reaffirming the validity of Ministerial Resolution No. 334-2021, which absolutely bans the use and commercialization of electronic nicotine delivery systems known as “vapeadores” or e-cigarettes.
Jan.04 by 2FIRSTS.ai
Product | “2+20” Configuration and Magnetic Semi-Enclosed Design: JNR Open-System E-cigarette Enters the UK Market
Product | “2+20” Configuration and Magnetic Semi-Enclosed Design: JNR Open-System E-cigarette Enters the UK Market
The e-cigarette brand JNR has recently launched its open-system product, JNR Whale, in the UK market, with the device now available through online retail channels such as Vape Sourcing and IDEA VAPE. The product features a 2+20 ml refillable configuration, combined with a dual mesh coil and a magnetic design, and is priced at approximately £11.99 across retail channels.
Dec.16 by 2FIRSTS.ai
Brazil’s federal prosecutors sue for strict e-cigarette rules, urging regulation over a “paper ban”
Brazil’s federal prosecutors sue for strict e-cigarette rules, urging regulation over a “paper ban”
Brazil’s Federal Public Prosecutor’s Office (MPF) has filed a public civil action seeking to compel the federal government and Anvisa to establish a strict, enforceable regulatory framework for electronic smoking devices, replacing the current blanket ban. The lawsuit calls for mandatory product registration, nicotine caps, bans on youth-targeted advertising, and clear health warnings on packaging, and demands a national consumption report and an implementation timetable within 90 days.
Jan.30 by 2FIRSTS.ai
Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
Philip Morris International Opens IQOS Flagship Boutique in the Philippines, Featuring an IQOS Scent Experience Zone
PMFTC, the Philippine affiliate of Philip Morris International (PMI), opened an IQOS flagship boutique on December 19 in the Ayala business district of Makati City, the Philippines. Positioned as a multi-sensory, immersive retail space, the store is designed for legal-aged nicotine users. It features the Philippines’ first IQOS Scent Experience zone and also showcases the upcoming IQOS x ISABEL collaboration.
Dec.29 by 2FIRSTS.ai