Wednesday, 17 July 2019 | 18:29 WIB

Govt Ensures Vaping Subject to Excise Duty of 57 Percent

Director General of Customs and Excise Heru Pambudi

JAKARTA, NETRALNEWS.COM - Users of electric cigarettes or vaporizers (vape) that are popular nowadays should prepare to spend more, because the government through the Directorate General of Customs and Excise at Ministry of Finance makes sure vape will be subject to excise duty of 57 percent which comes into force on July 1, 2018.

"The basic ingredients of this type of cigarette is liquid from tobacco, so of course this is object of the Customs Law whose consumption is still subject to excise," said Director General of Customs and Excise Heru Pambudi, Friday (11/3/2017).

Therefore, with regard to these excise duties, the Customs and Excise authorities will coordinate with the Ministry of Commerce to ensure law enforcement of this policy can proceed well.

However, Heru claimed he has yet to target the amount of revenue from the imposition of vape excise, because the most important now is to limit consumption of products that potentially harm health.

"The potential revenue needs to be seen more deeply, this is the first time, [we] should see it in the future," he said.

According to the plan, the government will also arrange excise taxes on other products of Tobacco Processing Outcome (HPTL) which began to freely circulate amid community such as e-cigarette, tobacco molasses, snuffing tobacco, and chewing tobacco.

Besides previously not being regulated explicitly, these products even now begin to be consumed by children.

Through the imposition of excise duties on these HPTL products, the government expects the prices of these products to rise and no longer affordable by children.