Government to impose 57 percent e-cigarette tax

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…