Republic of Indonesia Hits Vapers with Big Tax
 good or bad soupwire emblem

A pinch to the pocketbook, that is.

Beginning Sunday, a 57 percent excise tax on all liquids for e-cigarettes will be introduced throughout the Republic of Indonesia, home to more than 217 million residents. It is one of the major economies in Southeast Asia, according to Reuters.

The motive behind the Indonesian vaping tax, government officials said, is to dissuade the nearly 900,000 smokers from indulging with nicotine or e-cigarettes.

Indonesia has one of the world’s highest smoking rates. A customs and Excise Office representative indicated the liquids tax is an extension of the tobacco tax standard, which remains one of the republic’s biggest sources of revenue, Reuters reported.

The new tax only applies to e-juices with traces of tobacco. It’s expected to amass 155.4 trillion rupiah, which is approximately $11.20 billion in U.S. dollars.
The new Indonesian vaping tax will also affect about 300 e-liquid producers, which largely operate with little government interference, and more than 4,000 vape shops, according to Reuters. This is a potentially huge blow to both vapers and retailers throughout the country.
Want to keep up with the latest vaping regulations happening around the world? Check out our News section for up to date info on legislation that affects you.