According to media reports such as Bloomberg,IndonesiaMinistry of Financeexpress,Will be removed fromtwo thousand and twenty-fouryearStarting from January 1stLevy additional fees on electronic cigarettesA 10% cigarette tax. Earlier,IndonesiaAnnounced an increase in consumption tax on e-cigarettes15%.

The Indonesian official stated that,Increasing electronic cigarette tax is to ensure tax fairness between electronic cigarettes and traditional cigarettes,in additionLong term use of electronic cigarettes has been proven to be harmful to human health,

Data display, fromSince 2018, the global e-cigarette market has been continuously expanding, from $7.806 billion in 2015 to $22.349 billion in 2022. Between 2018 and 2022, the market growth rate of disposable e-cigarettes reached 116%, with over 550000 different products launched, accounting for 22% of the global e-cigarette market.

The World Health Organization states that e-cigarettes containing nicotine are highly addictive and harmful to health. Although the long-term effects on health are not fully understood, it has been determined that e-cigarettes produce toxic substances, some of which are known to cause cancer, while others increase the risk of cardiovascular disease.

The use of electronic cigarettes can also affect brain development, leading to learning disabilities in adolescents, and exposure to electronic cigarettes by pregnant women can also have adverse effects on fetal development. In addition, non-smokers exposed to electronic cigarette emissions also face risks.

The World Health Organization believes that it is necessary for countries to take emergency measures based on their national conditions to prevent the use of e-cigarettes and address nicotine addiction, while adopting comprehensive tobacco control methods. Including in countries that prohibit the sale of electronic cigarettes, strengthening the implementation of bans and continuing monitoring and supervision to support public health interventions and ensure strong enforcement.In countries that allow the commercialization of electronic cigarettes as consumer goods, ensure strict regulation to reduce their attractiveness and harm to the population, including banning various flavors, limiting nicotine concentrations, quality control, and taxation.

fromIndonesiaNational Association of Electronic CigarettesThe e-cigarette alliance, electronic liquid manufacturers association, electronic nicotine business alliance, and Bali e-cigarette associationPavenas visited the Ministry of Finance and requested that the government postpone the collection of cigarette taxes on electronic cigarettes until 2027, and not increase the consumption tax when collecting cigarette taxes.They believe that the government has ignored the voice of the industry and the sustainability of the business, and this decision has caused direct economic losses to the e-cigarette industry. They are considering legal measures to address the upcoming tax policy.

Representative of Galindra, Secretary General of the Indonesian Personal Electronic Cigarette AssociationPavenas pointed out that the plan to impose a cigarette tax on electronic cigarettes in 2024 seems very hasty and has not been thoroughly considered. The parties affected by this policy did not participate in the entire formulation process.

PavenasI have previously sent written letters to the Ministry of Finance twice requesting a meeting to discuss the issue of electronic cigarette taxation, but have never received a response.