In 2018, the changes in Indonesia’s e-cigarette market policy are not perfect
Introduce a tax policy on e-cigarettes, but in fact support the tobacco industry
In January 2018, the Indonesian government stated that it would impose a 57% tax on non-tobacco alternatives starting in the summer of 2018. Hasbullah Thabrany, an Indonesian health expert and adviser to the National Tobacco Control Committee, warned that although the tariff and consumption tax laws require the government to set taxes on these products, the government may use taxation to favor one party and said, “I believe this policy will support the tobacco industry.”
Indonesian Trade Minister, Enggartiasto Lukita, said that the development of e-cigarettes would harm the interests of tobacco growers, and those who turned to e-cigarettes should smoke traditional cigarettes.
Announced the legalization of e-cigarettes and established the Indonesian E-cigarette Festival
In July 2018, according to the Indonesian Association (APVI) news, Indonesian e-cigarette enthusiasts confirmed that the world’s first e-cigarette festival was born.
The Indonesian government officially announced the legalization of e-cigarettes, and designated July 18 as the “Indonesian E-cigarette Festival”. This can be regarded as a strong shot for the global e-cigarette market. In the future, the development of e-cigarette market in the Asia-pacific region is bound to see encouraging growth momentum.
Postpone the date of taxation on e-cigarettes until October
In August 2018, the Indonesian government’s financial department announced to the outside world that due to various factors, it was planned to start tax increase measures for e-cigarette products and e-liquids from July 2018, and it was scheduled to be postponed until October 2018.
According to statistics, there are currently more than 200 new tobacco product producers and traders in Indonesia.
The data shows that if the government implements the new tax rate measures for e-cigarette products in October this year, it is expected that the government will receive a tax of 200 billion rupees (about 19.5 billion yuan) from the field in 2018.