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Indonesia imposes new tax on e-cigarettes

Indonesia officially imposed a new tax on e-cigarettes on January 1, adding to an excise tax to help curb vaping.
Indonesia imposes new tax on e-cigarettes ảnh 1Indonesia officially imposes a new tax on e-cigarettes on January 1 (Photo: antaranews.org)
Jakarta (VNA) – Indonesia officially imposed a new tax one-cigarettes on January 1, adding to an excise tax to help curb vaping.

Deni Surjantoro, head of the Communication and InformationService Bureau of the Ministry of Finance, said that the purpose of imposingthis tax, on top of the excise duties, is to control tobacco consumption amongthe public.

The government had provided a transition period for thecollection of taxes on e-cigarettes since the imposition of excise duties inmid-2018, Deni Surjantoro said on December 30.

According to the ministry, both e-cigarettes and traditional ones are equally harmful. However, e-cigarettes were only brought underexcise tax regulations in 2018. The decision to tax e-cigarettes emphasises theprinciple of fairness, taking into account that conventional cigarettes involvetobacco farmers and factory workers who have been paying cigarette taxes since2014.

The revenue from e-cigarette taxes in 2023 amounted to 1.75trillion Rp (113.7 million USD), or about 1% of the total revenue from tobaccoexcise annually. More than 50% of the revenue from cigarette taxes will bedirected toward public health services and law enforcement, supporting betterpublic services, he added./.
VNA

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