Indonesia will impose a steep 57 percent excise tax on e-liquid products sold in the country, in a move which signals the government’s commitment to exercise its unwavering control over tobacco products.
The southeast Asian country already imposes a hefty tax on all other types of tobacco products and yet it has some of the highest smoking rates in the world, according to Reuters.
For years, taxation on e-liquid products had yet to be established in Indonesia, but starting July 1, e-liquid products will face an excise tax for the first time, and this is troubling news for the country’s vapers and vape retailers.
The Indonesian customs office estimates that there are currently about 300 unsupervised vape juice manufacturers producing the product for sale to more than 4,000 vape shops that cater to 900,000 users, Reuters reports.
Sunaryo, an official with the Customs and Excise Office, has said that the 57 percent tax on e-liquid products is merely an expansion on the current taxation in place for all other tobacco products.
Tobacco tax is a significant source of government revenue and this latest taxation will only add to it. This year’s revenue target from excise duties is 155.4 trillion rupiahs, or $11.20 billion USD, and the new tax on e-liquid products is expected to bring in 100-200 billion rupiahs a year, Reuters also reports.
This excise tax on e-liquid products puts Indonesia on the fast track to make vaping significantly more expensive than smoking at the expense of the consumer.
To read more click here for the Reuters article.
Chris Mellides is the Managing Editor of VAPE News Magazine. A seasoned journalist, he has worked in all areas of the media industry since first getting his start in newspaper reporting. Contact him at email@example.com.
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