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

Rethinking Nicotine Harm Reduction: A Neuroscientist’s Perspective on Scientific Gaps and Future Directions — By Dr. Xin-an Liu
Rethinking Nicotine Harm Reduction: A Neuroscientist’s Perspective on Scientific Gaps and Future Directions — By Dr. Xin-an Liu
After France’s ANSES report on nicotine products and harm reduction, Dr. Xin-an Liu wrote to 2Firsts reassessing the field’s foundations. She argues the debate reveals gaps in evidence on long-term behavioral substitution, addiction pathways and neurobiological impacts, and calls for longitudinal research, integrated behavioral science and neuroimaging, clearer risk assessment and stronger transparency to ensure policy and next-generation product development rest on solid evidence.
Industry Insight
Feb.24
China to Cancel VAT Export Rebates on E-Cigarette Products from April 1, 2026
China to Cancel VAT Export Rebates on E-Cigarette Products from April 1, 2026
China’s Ministry of Finance and State Taxation Administration have announced adjustments to export tax rebate policies, placing nicotine-containing non-combustible inhalation products within the scope of items subject to rebate cancellation. The measures will take effect from April 1, 2026.
Regulations
Jan.10
BAT Japan rolls out limited-edition “Rose Quartz” colourway for glo Hilo, launches new virto click-capsule flavour
BAT Japan rolls out limited-edition “Rose Quartz” colourway for glo Hilo, launches new virto click-capsule flavour
British American Tobacco (BAT) Japan will introduce its first Valentine’s-season limited-edition colourway, “Rose Quartz,” for the glo Hilo heated tobacco device lineup, covering both the glo Hilo and glo Hilo Plus. The devices are priced at JPY 3,980 (about $25.2) and JPY 6,980 (about $44.1), respectively, and will go on sale via official channels from Feb. 9. BAT Japan will also launch a new glo Hilo-compatible virto tobacco stick variant, “virto Bright Cherry Click,” on Feb. 2.
Jan.20 by 2FIRSTS.ai
Product | Claiming “U.S.-Made E-Liquid” and “80,000 Puffs,” VOOPOO Launches NAVI×Cyph 80K
Product | Claiming “U.S.-Made E-Liquid” and “80,000 Puffs,” VOOPOO Launches NAVI×Cyph 80K
VOOPOO’s website shows the company has introduced the NAVI×Cyph Kit 80K, an open-system, refillable vaping kit claimed to deliver up to 80,000 puffs. The device features a 1,500mAh battery with USB Type-C charging and comes in 12 flavors. A promotional image posted on VOOPOO’s official Instagram account includes the phrase “E-LIQUID BUILT IN THE USA.”
Feb.10 by 2FIRSTS.ai
Haypp Reports 15% Q4 Sales Growth as Nicotine Pouch Volumes Rise
Haypp Reports 15% Q4 Sales Growth as Nicotine Pouch Volumes Rise
Haypp Group announced that net sales for October–December 2025 rose 15% year-on-year to SEK 1,052.2 million, or 19% in constant currency terms. The company recorded 28% volume growth in the nicotine pouch category during the quarter. The number of orders increased to 1.34 million, and active consumers rose to 630,000, marking the highest level in the company’s history. CEO Gavin O’Dowd said the company’s accelerating topline performance in the US and UK positions it for a strong 2026.
Market
Feb.22
Reynolds American’s Grizzly expands NASCAR presence, to be primary sponsor for 27 Kaulig Racing Cup races in 2026
Reynolds American’s Grizzly expands NASCAR presence, to be primary sponsor for 27 Kaulig Racing Cup races in 2026
Grizzly Nicotine Pouches, a brand of American Snuff Company (ASC), a Reynolds American unit, said it will increase its NASCAR investment in the 2026 season, serving as primary sponsor for a combined 27 races across Kaulig Racing’s two full-time NASCAR Cup Series cars. The company added that Grizzly is already one of NASCAR’s official partner brands across all NASCAR tracks.
Jan.29 by 2FIRSTS.ai