Indonesia announces tobacco tax increase in 2024, vape tax increased by 15%

[VPFIT China Vape Supplier]

Indonesia announces tobacco tax increase in 2024
According to Indonesian media viva reported on December 18, the Indonesian Direktorat Jenderal Bea dan Cukai(DJBC) confirmed that the tobacco tax (Cukai Hasil Tembakau, referred to as CHT) will be increased by 10% in 2024. While vape tax will increase by 15%.

This arrangement has been clearly stipulated in the Ministry of Finance Regulation (Peraturan Menteri Keuangan, referred to as PMK) No. 191 of 2022. This regulation mainly covers the use of cigarettes, cigars, hand tobacco and cut tobacco (Tembakau Iris, referred to as TIS). Tobacco tax rates.

Previously, Askolani, director of the Taxation Department of the Indonesian Ministry of Finance, also stated that they have prepared approximately 17 million cigarette tax stamps for January 2024. This is consistent with their strategy to increase tobacco tax rates in 2024.

Influence to vape manufacturing factories:
Demand and Sales: Higher taxes on vapes in Indonesia may result in a decrease in demand for vaping products in the country. This could potentially impact the sales and exports of vape factories that cater to the Indonesian market.

Market Adjustment: Vape factories may need to adapt to the changing market conditions. They might explore alternative markets or shift their focus to countries with less stringent tax policies on vaping products.

Product Innovation: Increased taxes can incentivize vape manufacturers to invest more in product innovation. They may develop new devices, flavors, or technologies to meet the evolving demands of markets with higher taxes or focus on creating products with greater value to justify the higher prices resulting from increased taxes.

Compliance and Regulations: Vape manufacturers may need to ensure compliance with Indonesian tax regulations to continue exporting their products to the country. They might have to work closely with distributors and retailers to navigate the tax landscape effectively.

Diversification: Vape manufacturing factories could explore diversifying their product offerings beyond traditional vaping devices. They might consider expanding into other related markets, such as nicotine-free alternatives, CBD vaping products, or other emerging trends in the industry.