Indonesian government has begun taxing vaping products

The Indonesian government has decided to begin taxing vaping products, or e-cigarettes, starting January 1, 2024, Ministry of Finance spokesperson Deni Surjantoro confirmed on Saturday, December 30, 2023.

Deni explained that the tax is intended to curb the use of e-cigarettes. Under Law No. 1/2022, the tax provision is set out in the Minister of Finance Regulation on e-cigarette taxation for 2023 (PMK No. 143/PMK/2023), under the law governing financial relations between the central and local governments, also known as the HKPD Law.

According to information on the Ministry of Finance website jdih.kemenkeu.go.id, the tax on cigarettes, including e-cigarettes, will be 10% of the current excise rate.