INDONESIA
The government estimates it may collect up to IDR3 trillion (US$207 million) in additional revenue next year from a new excise on tobacco extract, or vaping liquid. The government began imposing an excise on vaping liquid on July 1. Under a new regulation, the liquid is subject to a 57% excise tax, more than four times the maximum excise on regular cigarettes.
In addition, the government requires up to 200 domestic producers to start attaching excise ribbons to product containers and pay excise on it by October 31. Only vaping liquids containing tobacco extract or nicotine are subject to the excise.
Heru Pambudi, director general of customs and excise at the Ministry of Finance, said, “If there are any businesses not using the ribbon after the transition deadline, we will seize it.”
Noegroho Wahyu, acting director of excise, said only three producers are currently registered but the government expects the remaining producers to do so before the deadline. He also said that the government will likely only collect between IDR50-70 billion in additional revenue from the new excise this year.