Vapeboss – The government's decision to increase excise taxes on cigarettes and e-cigarettes was made after a meeting at the Bogor Presidential Palace, considering several aspects such as agricultural workers and the tobacco industry.
The government also increased excise taxes on e-cigarettes and other processed tobacco products (HPTL), also known as e-cigarettes and similar products. Minister of Finance Sri Mulyani Indrawati affirmed that the increase in excise tax rates on HPTL products will continue annually for the next five years.
"Today, it was also decided to increase the excise tax on electronic cigarettes by an average of 15 percent for e-cigarettes and 6 percent for HPTL. This will apply, with a 15 percent increase every year, for the next 5 years," Sri Mulyani stated.
Meanwhile, in other countries, some public health and cessation experts, in a study by Yale Professor Abigail Friedman and Georgia State University Professor Michael Pesko, have confirmed that vape tax increases have serious unintended consequences and will certainly lead to an increase in smoking rates.
The study, titled "Young adult responses to taxes on cigarettes and electronic nicotine delivery systems," examined the impact of vape tax increases on vaping and smoking behavior among young consumers aged between 18 and 25. Consistent with the arguments and predictions of experts in the field, the researchers found that higher vape tax rates can lead to a decrease in e-cigarette use, which in turn leads to an increase in smoking.
"A one-dollar increase in (vaping) taxes resulted in a significant reduction in young adults' daily vaping alongside an increase in recent smoking," the authors reported.
"The researchers ultimately concluded that higher taxes on electronic nicotine delivery systems (ENDS) are associated with decreased ENDS use but increased smoking among 18-25 year olds."