The Indonesian government announced that it decided to impose a 57% excise tax on (the price of) the e-cigarette (effective per 1 July 2018), a decision that is a blow for local e-cigarette players. The government’s decision was taken while keeping in mind the following matters: (1) health issues, (2) the e-cigarette industry, (3) consumers’ purchasing power, and (4) the threat of illegal e-cigarette trade.
However, the Association of Personal Vaporizer Indonesia (APVI) stated that the 57% excise hike is too much and may even kill the smaller sized e-cigarette companies in Indonesia. There are currently around 5,000 “vape” shops in Indonesia with average daily sales reaching Rp3 million per shop. A 57% excise hike could have a devastating impact on these shops.
