Government to impose 57 percent e-cigarette tax
The Jakarta Post
The government will impose a 57 percent tax on electronic cigarettes, but its implementation has been postponed from July 1 to Oct. 1.
The Finance Ministry’s technical and excise director, Nugroho Wahyu, said selling e-liquid without the additional tax was still allowed until Oct. 1.
“We cannot implement the regulation starting on July 1 because there are many users. We told the vendors they are allowed to sell e-liquid without the additional tax until Oct. 1,” Nugroho said in Jakarta on Tuesday as reported by tribunnews.com.
However, the e-liquid should be produced before July, while liquid produced after July had to be sold with the tax.
The Finance Ministry's Customs and Excise Directorate General has estimated that the revenue from the e-cigarette tax will be between Rp 5 trillion and Rp 6 trillion annually.
The customs office estimated that this year, revenue from the e-cigarette tax from October is expected to reach Rp 200 billion.
The tax is based on Finance Ministerial Regulation No. 146/010/2017 on tobacco.
The tax is relatively high as the average tax on e-cigarettes in other countries is 20 percent, with Russia imposing the highest tax at 81.17 percent, followed by Portugal at 62.92 percent. (bbn)
- North Sumatra's regent nabbed in antigraft operation
- 'Waria' told to leave their home in Jakarta amid anti-LGBT campaign
- 22 migrants missing off Morocco after boat capsizes
- Indonesia's latest economic stimulus package: What you need to know
- 'Moral panic' targets Indonesia's LGBT community
- Boeing ‘confident’ in 737 MAX safety despite aircraft flaw
- Christian school rumor leads to closure of vocational academy in Batam
- Trump says doesn't want to hear 'suffering' Khashoggi tape
- Republican urges conservatives to run against Trump in 2020
- Govt looks to private employees to fill public jobs after 90 percent of applican...