Indonesia Customs: Vape Tax is Control, Not Prohibition

Indonesia’s Director of Customs Communication, Nirwala Dwi Heryanto, has clarified the government’s fiscal approach to regulating the country’s growing e-cigarette (vape) industry. He explained that when the industry began expanding in 2015, it operated in a “regulatory vacuum” until vapes were officially classified as excisable goods in July 2018.

Nirwala stated that Customs applied an excise tax because vapes meet the necessary criteria: their consumption needs to be controlled, their circulation supervised, they pose potential negative impacts, and they require a state levy for fairness. “By imposing excise duty, their consumption will be limited, we can map the industry’s size, secure the industry, and there is state revenue,” he explained. Vape products are now taxed within the tobacco industry framework.

However, Nirwala emphasized that the authority to completely ban or permit vape consumption does not lie with Customs or the Ministry of Finance, but rather with the Ministry of Health or the Food and Drug Supervisory Agency (BPOM).

This regulatory approach contrasts sharply with neighboring Singapore, which has banned vapes since 2018 and is now tightening its rules further. Singapore’s Prime Minister Lawrence Wong announced that vape use will be treated with the severity of a drug problem, citing the discovery of harmful addictive substances like etomidate in seized devices. “The real danger is what’s inside,” Wong stated, highlighting the different regulatory priorities of the two nations.

• Read more: Indonesia: “We Ban the Drug, Not the Vape” in Contrast to Singapore
• News source: Vape di Singapura Dilarang, Bea Cukai Jelaskan Kondisinya di RI

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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