Indonesia

The Republic of Indonesia introduced an excise tax on liquid used in electronic cigarettes on July 1. Ministry of Finance regulation number 146/PMK.010/2017 includes “extracts and essences” among other tobacco products to be subject to the Tobacco Products Excise Tax.

The regulation applies an excise tax of 57% of the retail selling price of the product. This is interpreted to mean the price at which the manufacturer or importer intends to sell the product. In the event that the “extract and essences” of tobacco are imported simultaneously with the devises for their consumption, the tax will apply only to the liquid and not the accompanying components used in the vaping process (Article 20).

The Ministerial Regulation was enacted in October 2017 and entered into force on 1 July 2018.