Indonesia will start collecting additional taxes on e-cigarettes effective Jan. 1, 2024, reports The Jakarta Globe. The new tax will be on top of existing excise duties.
According to the Ministry of Finance, the decision to tax electronic cigarettes emphasizes the principle of fairness, taking into account that conventional cigarettes involve tobacco farmers and factory workers who have been paying cigarette taxes since 2014.
In 2023, Indonesia collected IDR1.75 trillion ($113.7 million) in e-cigarette taxes, which equals about 1 percent of the total revenue from tobacco excise annually.
More than 50 percent of the revenue from cigarette taxes will be directed toward public health services and law enforcement.