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

EVO NXT: two days, four zones, countless opportunities
EVO NXT: two days, four zones, countless opportunities
Mar.30
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Group, Inc. announced the nationwide retail expansion of on! PLUS nicotine pouches, a product manufactured by Helix Innovations LLC, an Altria operating company. The product had already been available through e-commerce and participating retailers in North Carolina, Florida and Texas, began wholesale deliveries on March 16, 2026, and is expected to reach participating retailers nationwide starting March 23, 2026.
Mar.24 by 2FIRSTS.ai
South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea Expands Tobacco Harmful Components Testing System to Cover Synthetic Nicotine Liquid Vapes
South Korea’s Ministry of Food and Drug Safety said on April 17 that it has additionally designated the International Characterization Research Institute as a tobacco harmful components testing body under the Act on the Management of Tobacco Harmfulness. The institute has research experience in analyzing harmful components in liquid e-cigarettes and has obtained recognition for tobacco-sector ISO 17025 requirements.
Apr.17 by 2FIRSTS.ai
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
The U.S. Food and Drug Administration (FDA) announced on May 5, 2026 that it authorized the marketing of four Glas electronic nicotine delivery system (ENDS) products through the premarket tobacco product application (PMTA) pathway. The authorized products are Classic Menthol, Fresh Menthol, Gold and Sapphire pods, each containing 50mg/ml, or 5%, tobacco-derived nicotine.
May.06 by 2FIRSTS.ai
Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
According to The Wall Street Journal, people familiar with the matter said President Trump has signed off on a plan to fire FDA Commissioner Marty Makary, though the plan is not yet final and could change. The report said Makary’s tenure has included clashes over vaping, abortion and drug policy, and that some senior administration officials view him as struggling to manage the agency.
May.09 by 2FIRSTS.ai
UK Vape Distributor JM Wholesale Files Notice to Enter Administration
UK Vape Distributor JM Wholesale Files Notice to Enter Administration
UK vape distributor JM Wholesale filed a notice on March 20 to enter administration. The Leicestershire-based company submitted the notice through Shakespeare Martineau, with Quantuma expected to be appointed as administrator.
Mar.23 by 2FIRSTS.ai