Indonesian Vapor Industry Associations Urge Government to Postpone E-cigarette Taxes

Regulations by 2FIRSTS.ai
Dec.22.2023
Indonesian Vapor Industry Associations Urge Government to Postpone E-cigarette Taxes
Indonesia's National Vaper Association (PAVENAS) has requested a delay in e-cigarette taxes until 2027, citing unfair burdens on the industry.

According to a recent report by Indonesian local media outlet Detik, the Indonesian National Vaporizer Association (PAVENAS), comprised of various organizations including the Indonesian Personal Vaporizer Association (APVI), the Indonesian Vapers Alliance (AVI), the Indonesian Electronic Liquid Oil Manufacturer Association (PPEI), the Indonesian E-Cigarette Entrepreneurs Association (APPNINDO), and the Bali Vaporizer Association (AVB), paid a visit to the Ministry of Finance in Jakarta. They requested that the government delay the implementation of tobacco taxes on e-cigarettes until 2027 and also urged against adding any additional consumption taxes during the implementation process.

 

PAVENAS also encourages the government to prioritize transparency and fairness while formulating policies, allowing businesses to participate directly

 

Garindra Kartasasmita, the Secretary General of APVI, representing PAVENAS, expressed concern over the plan to increase taxation on e-cigarettes in addition to the current tobacco tax. This move is seen as a significant blow to entrepreneurs, consumers, and industry participants.

 

In addition, this plan has never been communicated to us or discussed beforehand. It should be noted that the e-cigarette industry is a relatively new one, with the majority of industry participants coming from the community and small to medium-sized enterprises," he said.

 

Garendera emphasized that there are plans to impose the current sales tax of 10% on e-cigarettes, while also increasing the consumption tax on e-cigarettes by 15% (as previously stipulated in PMK Regulation No. 192 of 2022). This will impose a heavy burden on the industry.

 

If this is done, by 2024, the tax burden on the e-cigarette category will exceed 25%. This figure is even higher than the increase in traditional cigarette consumption tax in 2020," he said.

 

Galandra stated that the plan to impose cigarette taxes on e-cigarettes by 2024 appears to be rushed and lacking careful consideration. The parties affected by this policy were not involved in the entire formulation process.

 

We request the government to provide insight into the plan to impose cigarette taxes on e-cigarettes. The information related to this discourse was only communicated by the General Administration of Fiscal Equilibrium and the General Administration of Customs and Consumption Tax at the 2024 Consumer Tax Department Policy Socialization Conference held on November 28, 2023, with the implementation set to take effect on January 1, 2024. In other words, there is less than a month remaining until its implementation.

 

He stated, "There was no discussion process, and we expressed our opposition to the sudden implementation time and the impact of the triple blow directly.

 

In light of this, PAVENAS is urging the government to impose cigarette taxes on e-cigarettes at least five years from now. This demand echoes the implementation of traditional cigarette taxes, which also had a transition period.

 

We hope that the policy-making process related to the e-cigarette industry can be conducted in an open and transparent manner, allowing all stakeholders affected by regulations to participate. This is crucial for the overall business continuity of the industry, including investments and employment," he said.

 

PAVENAS decided to take matters into their own hands and directly approach the Ministry of Finance after not receiving any response to their two written letters and request for a hearing. They sought answers from the government, particularly the Bureau of Fiscal Equilibrium, and demanded greater transparency.

 

Members of PAVENAS hope that through their presence, the government will be willing to engage in discussions and hold public hearings with all parties affected by the proposed e-cigarette tax to be implemented in 2024.

 

Garender concluded, "If e-cigarettes are still subjected to tobacco taxes in 2024, we are prepared to take legal action in order to seek justice for business actors.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Malaysia Police Seize RM12.7 Million in Illegal Vapes and Cigarettes as Probe Points to Sea Shipments From China
Police in Malaysia’s Selangor state seized illegal vape products and contraband cigarettes worth about RM12.7 million (approximately $3 million) in two enforcement operations. According to New Straits Times and The Star, the vape-related operation uncovered 131,036 boxes of vape products, 4,900 bottles of e-liquid and 25,510 vape devices, valued at about RM9.4 million. Police said preliminary investigations indicated that some illegal vape products entered Malaysia through sea shipments from China before moving through storage and distribution networks.
Aug.10
U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
The U.S. Food and Drug Administration (FDA) said its youth e-cigarette prevention campaign, “The Real Cost,” prevented about 444,000 U.S. youth from starting e-cigarette use between 2023 and 2024 and blocked more than $42 million in unauthorized e-cigarette sales that would have been used by youth.
Market
Jun.25
Scotland Plans to Remove Business Rates Relief From Vape Shops From 2027
Scotland Plans to Remove Business Rates Relief From Vape Shops From 2027
The Scottish Government plans to remove business rates relief from vape shops from April 1, 2027, saying the measure is intended to ensure vape retailers contribute to the high street and align rates relief with public health commitments, while the impact on convenience stores that sell vaping products remains unclear.
News
Jun.26 by 2Firsts Perspectives
KT&G’s Lil Strengthens Market Lead in Korea as Heated Tobacco Share Reaches 47.4%
KT&G’s Lil Strengthens Market Lead in Korea as Heated Tobacco Share Reaches 47.4%
According to South Korea’s UpKorea, KT&G’s heated tobacco brand Lil reached a 47.4% share of Korea’s heated tobacco stick market in the first quarter of 2026. The company is expanding its next-generation products (NGP) business through product development, technology investment and overseas growth. KT&G reported NGP sales of 890.1 billion won (approximately US$650 million) in 2025, up significantly from 279.3 billion won in 2020. Lil products are now available in 34 markets, while KT&G continues building its technology portfolio through patents and multiple product platforms.
Jul.23
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
Scottish Vape Display Rules Could Cost Businesses £61 Million, Affecting More Than 11,000 Retail Outlets
A Scottish government impact assessment estimates that proposed vape display and packaging rules could create up to £61 million ($82 million) in compliance costs for businesses, affecting more than 11,000 retail outlets. The estimated costs are mainly linked to inventory adjustments, retail storage changes and the resources required for businesses to understand and implement the new requirements. The measures form part of the UK’s broader efforts to tighten vape regulation, particularly around product displays, packaging and sales practices.
Aug.10
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA Foreign Tobacco Registration Proposal Could Strengthen ENDS Import Oversight, Azim Chowdhury Says
FDA’s proposed rule requiring foreign tobacco manufacturers to register establishments and list products is more than routine paperwork, Keller and Heckman LLP partner Azim Chowdhury told 2Firsts. He said it could strengthen FDA’s import enforcement, inspections and market surveillance. Chinese e-cigarette OEM/ODM manufacturers, specification developers, brand owners and component suppliers may need to review their roles, product data and U.S. market authorization status.
Special Report
Jun.29