Vapeboss – Member of Commission XI of the Indonesian House of Representatives, Bertu Merlas, proposed to the government to categorize the excise duty rates for electronic cigarettes (REL). Bertu said that electronic cigarette products produced by small industries need to be accommodated through the categorization of REL excise duty rates.

"Don't generalize them, because there are many creative industries, especially in Bandung City, which are home industries, and these certainly cannot be equated with large-scale REL industries or other processed tobacco products (HPTL)," said Bertu.

According to Bertu, applying increased REL excise duty rates to large companies is an appropriate step given that these companies import products from abroad. However, the system of increasing REL excise duty rates for local producers needs to be reconsidered because it concerns employment absorption.

"In small industries, there is a lot of labor absorption, while most of the large RELs are imported cigarettes, and their equipment is also imported. If that increases, we agree, but if it is processed domestically, please also give consideration to the existing creative industries," he said.

Bertu said that there are approximately 200 small REL industries that need protection and support from the government.

For information, REL excise duty rates will increase by 15% for 2023 and 2024, different from the government's previous plan for rates to increase until 2027.

Deputy Chairman of Commission XI of the Indonesian House of Representatives, Dolfie O.F.P., said that the policy of increasing REL excise duty rates needs to be adjusted to the period of President Joko Widodo's (Jokowi) administration, which ends in 2024.

"Regarding the excise duty on electronic cigarettes and HPTL, they are asking for it for the next 5 years. We limit it to the term of the government, Madam, 2 years," said Dolfie.

Source: DDTC