Indonesian business groups jointly request: delay taxation on vaping devices

This request comes from the Indonesian National Electronic Cigarette Association (Pavenas), which consists of the Indonesian Personal Electronic Cigarette Association (APVI), the Indonesian Electronic Cigarette Alliance (AVI), the Indonesian E-Liquid Producers Association (PPEI), the Indonesian Nicotine Delivery Enterprises Alliance (APPNINDO), and the Bali Electronic Vaporizer Association (AVB).

In addition to requesting a delay in the taxation of electronic cigarettes, the business associations also hope that the Ministry of Finance will not increase taxes when implementing tobacco taxes.
"If a 10% tax rate applies to consumption tax, it will be a very heavy burden for us, as most of us are small and medium enterprises," said Ana Pilawa, chair of the Appnindo Regulatory Advocacy Group, in an interview with kompas.com.
According to Ministry of Finance Regulation No. 192 of 2022, in 2024, the tax rate for domestic and imported electronic cigarettes will also increase by about 15%. This regulation stipulates the quantity of domestic and imported electronic cigarettes, calculated in Indonesian Rupiah, for the customs duties on each milliliter of open system liquid electronic cigarettes and for each cartridge within closed system liquid electronic cigarettes.
Then, there will be customs duties applicable to solid tobacco in electronic cigarettes, which is in sticks or capsules, as well as for each milliliter of liquid nicotine in electronic cigarettes.

Some business associations in Indonesia are requesting the government to postpone the plan to impose taxes on electronic cigarettes in 2024.

This request comes from the Indonesian National Electronic Cigarette Association (Pavenas), which consists of the Indonesian Personal Electronic Cigarette Association (APVI), the Indonesian Electronic Cigarette Alliance (AVI), the Indonesian E-Liquid Producers Association (PPEI), the Indonesian Nicotine Delivery Enterprises Alliance (APPNINDO), and the Bali Electronic Vaporizer Association (AVB).

In addition to requesting a delay in the taxation of electronic cigarettes, the business associations also hope that the Ministry of Finance will not increase taxes when implementing tobacco taxes.
"If a 10% tax rate applies to consumption tax, it will be a very heavy burden for us, as most of us are small and medium enterprises," said Ana Pilawa, chair of the Appnindo Regulatory Advocacy Group, in an interview with kompas.com.
According to Ministry of Finance Regulation No. 192 of 2022, in 2024, the tax rate for domestic and imported electronic cigarettes will also increase by about 15%. This regulation stipulates the quantity of domestic and imported electronic cigarettes, calculated in Indonesian Rupiah, for the customs duties on each milliliter of open system liquid electronic cigarettes and for each cartridge within closed system liquid electronic cigarettes.
Then, there will be customs duties applicable to solid tobacco in electronic cigarettes, which is in sticks or capsules, as well as for each milliliter of liquid nicotine in electronic cigarettes.