Vaping To Be Taxed More in Indonesia

January 13, 2018 Taxation in Indonesia

VapingJAKARTA – Vaping may make way for smoking in Indonesia, if consumers find tax burdens too high.

According to a new announcement from the government of Indonesia, the sale of e-cigarettes in the country will now be subject a significant new tax.

From July 1st 2018 e-cigarettes sold in Indonesia will face a tax of 57 percent.

Supporters of e-cigarettes, or vapes, have claimed that the rate of the tax is too high, and that the new measure will reduce demand for the tobacco alternative.

It has even been claimed that the relative increase in the price of the e-cigarettes will lead to a greater uptake of traditional tobacco products.

However, Heru Pambudi, the head of Customs of Indonesia, has said that the government fully considered the impact of the tax before making the decision to enact the tax.

There is currently an estimated 5 000 shops in Indonesia selling e-cigarettes and related products.