TEMPO.CO, Jakarta - The Indonesian Vapor Entrepreneurs Association or APVI responded to the e-cigarette tax imposed by the government starting yesterday, Jan. 1, 2024.

APVI Secretary-General Garindra Kartasasmita claimed that the tax policy was implemented without any warning and proper discussion, in addition to poor timing.

"It feels unfair to us. Besides the lack of dissemination, there was no discussion, no time limitation, and it was imposed right as the excise increased by 15 percent," he told Tempo on Tuesday, Jan. 2.

By imposing the e-cigarette tax policy, Garindra said, there will be a consequence on the market price of e-cigarettes.

According to Garindra, the legal basis for the e-cigarette tax was unclear. "The Law No. 1 of 2022 on Financial Relations Between The Central Government And Regional Governments did not mention a single word on e-cigarettes," he said.

Regulations must be promulgated through proper procedures, Garindra went on. "There must be public hearings and discussions with affected parties. If planning to impose a tax, there must be a discussion with those paying it," he said. "Don't move arbitrarily. Don't let the government intervene in businesses for the interest of certain groups."

Earlier, the Finance Ministry released the Finance Minister Regulation No. 143/PMK/2023 on the procedures for collecting, withholding, and depositing cigarette tax, including e-cigarettes.

Citing jdih.kemenkeu.go.id, the tax imposed is 10 percent from cigarette excise. The tax will be collected simultaneously with the cigarette excise by the Customs and Excise Office.

DEFARA DHANYA | ANANDA BINTANG

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