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

China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China Tobacco Regulator Deputy Head Visits Laos as Both Sides Strengthen Cooperation on Illegal Tobacco Trade
China’s official Xinhua News Agency reported that Liu Sanjiang, deputy head and Party group member of China’s tobacco regulator, led a delegation to Laos from July 31 to Aug. 2, 2026, for discussions with Lao authorities on combating cross-border illegal tobacco trade. The two sides discussed areas including law enforcement cooperation, information sharing and efforts to address tobacco-related illegal activities such as counterfeiting and smuggling. The visit highlights cooperation between Chinese and Lao authorities on illicit tobacco control.
News
Aug.05
  South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea’s cigarette tax debate has resurfaced after the Ministry of Health and Welfare said tobacco price policy needed review, with a poll showing 63% of respondents support higher tobacco taxes.
Regulations
Jun.22
Trump Picks White House Health Policy Aide Heidi Overton to Lead FDA, Pending Senate Confirmation
Trump Picks White House Health Policy Aide Heidi Overton to Lead FDA, Pending Senate Confirmation
U.S. President Donald Trump has chosen White House health policy aide Heidi Overton to lead the Food and Drug Administration, Bloomberg reported, citing a person familiar with the matter. Overton currently works on health policy at the White House and previously held a senior role at the America First Policy Institute. If confirmed by the Senate, she would take over an FDA that has experienced months of senior-level turnover. The agency regulates products representing roughly one-fifth of U.S. consumer spending, including e-cigarettes, drugs, vaccines and much of the food supply.
News
Aug.19
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
Data|China’s January-May 2026 Device Exports Rise 13% While Nicotine Product Exports Decline 6.9%
According to China Customs export data analyzed by 2Firsts, China’s vape export mix continued to evolve during January-May 2026. Exports of electronic vaporisation devices (HS 85434000) increased 13.00% year on year, supported by growth in both shipment volume and average export prices. Meanwhile, exports of nicotine-containing non-combustible products (HS 24041200) declined 6.89%, with lower shipment volumes partly offset by higher average export prices.
Special Report
Jun.30
 Arizona Rules Extend Across Alternative Nicotine Supply Chain, With Licensing From 2028
Arizona Rules Extend Across Alternative Nicotine Supply Chain, With Licensing From 2028
Arizona Governor Katie Hobbs has signed HB 4001, bringing alternative nicotine products under a new state regulatory framework that will require maker and distributor licensing from 2028 and ban packaging designs that could appeal to minors.
Regulations
Jun.23
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece Oppose Ireland’s Nicotine Product Bill, Raising EU Regulatory Concerns
Italy and Greece have opposed Ireland’s proposed nicotine product regulations, arguing that the measures could affect EU market coordination and the free movement of products. Ireland plans to introduce stricter rules covering nicotine products including vapes and nicotine pouches, with measures involving packaging, marketing and sales controls. The dispute highlights differences among EU member states between stronger public health protections and maintaining regulatory consistency within the bloc’s single market.
Jul.29