New Tax On e-cigarettes in Indonesia from Jan 1

Indonesia introduces a 10% tax on e-cigarettes starting January 1, in addition to the existing 57% excise tax implemented in 2018. The move aims to curb vaping and address health concerns, bringing parity with conventional cigarettes. Critics argue for more discussion and challenge the timing, considering an upcoming excise tariff increase in 2024.

e-cigarettes

Indonesia, with one of the world’s highest smoking rates, has witnessed a tenfold surge in vaping over the past decade, with 70.2 million adults still consuming traditional cigs. The government is simultaneously redefining its inflation basket, incorporating e-cigarettes to gauge consumer price trends.