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revisit the Indonesia consumption tax policy for e-liquid

Industry insiders ask the government to revisit the consumption tax policy for e-liquid

The Indonesian Electronic Nicotine Transport Entrepreneurs Alliance (Appnindo) is currently calculating a special excise tax for closed system evaporator products. This is because of consumption.

The calculation of tax is currently considered incompatible with closed system products.
"For a closed system, [consumption tax is calculated through cartridges, Rp.17,100. Therefore, whether the content is 1 ml or 2 ml, [consumption tax] is equal to Rp.17,100. "Chairman Appnindo Roy Lefrans Wungow said.

As we all know, the excise tax for liquids in 15 ml bottles is IDR 10,000, while the excise tax for liquids in 30 ml bottles is IDR 20,000.
In other words, the excise tax for bottled liquids is approximately IDR 666 per milliliter, while the excise tax for closed systems is IDR 5700 per milliliter.

So far, there are at least three e-cigarettes with liquid closed systems in circulation in the country, namely NCIG Indonesia  and JUUL Labs.
Indonesia and Relx Vape Indonesia.

Roy said that the highly liquid closed system excise tax has a greater impact on closed system industry participants. According to him, due to Covid-19, the closed system

The number of vape users has been reduced by about 60-70%.

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