Indonesia will start imposing a tax on e-cigarettes from the beginning of 2024 in addition to the current excise tax as part of intensifying efforts to curb consumption.
E-cigarettes will be taxed at 10% of the prevailing tax rate, in accordance with Indonesia’s Ministry of Finance instructions.
In Indonesia, tobacco products are subject to two tariffs at the central and local government levels, with 50% of revenue allocated to public health services.
The policy of making e-cigarettes less expensive in Southeast Asia’s largest economy is in line with the World Health Organization’s recent warning of the dangers of vaping. The Indonesian government has told consumers that e-cigarettes and their substances are just as harmful as traditional cigarettes.
E-cigarette use in the country has increased tenfold since 2021, while up to 70.2 million adults have consumed cigarettes, according to Health Ministry data.
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