Indonesia kicks off 2024 with 10% e-cigarette tax to industry opposition

The government rang in the New Year with a 10 percent tax on electronic cigarettes effective as of Jan. 1, a move that comes after years of delay and has sparked opposition from industry players calling for the Finance Ministry to postpone the policy. The tax is calculated based on the excise imposed on electronic cigarettes, also called e-cigarettes or vape, as stipulated in Finance Ministerial Regulation (PMK) No. 143/2023. The ministry said the excise had been implemented in 2018 but that the related tax had not been imposed in line with a 2009 regulation that allowed a five-year transition period, even though the two policies were intended to work in tandem.