Hello Bigboss!! How are you today? Hope you're always healthy, your sustenance is abundant, and all your activities are made easy!!

Starting January 2022, the excise tax on HPTL (Heated Tobacco Products and E-liquids) in Indonesia officially increased. Of course, this is still a debate among vape and HPTL industry players, as the comparison of excise taxes between REL products is still considered unbalanced and significant, thus affecting product prices.

Roy Lefran, Chairman of the Indonesian Nicotine Delivery Entrepreneurs Association (APPNINDO), explained that the excise tax on closed-system vapes is 13 times higher than on open-system vapes, even though both use nicotine-containing e-liquids.

In open-system vapes, e-liquid is manually refilled and can be changed at will by the user. In closed-system vapes, the e-liquid is integrated with the cartridge, and users do not need to manually refill or change the e-liquid. In fact, for closed-system vapes, maintenance is simple and safer. Therefore, Roy concluded that these two vape systems differ in liquid distribution and filling.

"If we calculate by milliliter, the excise tax for open systems is indeed cheaper than for closed systems. This can be seen in the latest financial regulations, where the excise tax for open systems is Rp 445 per milliliter. The excise tax for closed systems is Rp 6,030 per milliliter. So the excise tax for closed systems is higher than for open systems," said Roy in a written statement.

Roy said that APPNINDO focuses on the government's attention, which is in the form of regulations that can protect the existence of the e-cigarette and HPTL industry, not from a profit-and-loss system involving differences in excise imposition.

"With regulations, we have certainty in doing business. This is enough for us to grow. Before regulations, shops were raided everywhere because the regulations were unclear," he added.

Following up on this, APPNINDO needs a dialogue with the government for further discussion. In the upcoming dialogue, APPNINDO plans to request a fairer, cheaper excise tax adjustment for REL and HPTL products from the government. However, they are currently waiting to dialogue with the government.

"For example, last year, the excise tax for closed systems was around 8 thousand per milliliter. But with intensive and extensive dialogue and adequate education, government stakeholders finally understood that an excise adjustment was needed. So this year, the excise tax for closed systems dropped from around 8,000 to around 6 thousand. I think there will be dynamic discussions about the amount of excise tax in the future," Roy emphasized.

Roy admitted that the different application of excise tax on open and closed REL and HPTL has a negative impact. In addition, the government's decision to impose rates is only based on estimates, not on scientific studies or research.

According to Roy, the number of REL or HPTL smokers reaches 2.2 million. Compared to conventional cigarette users or non-e-cigarette users, the number of e-cigarette consumers is much smaller.

"Just like coffee lovers. People drink coffee without sugar to avoid diabetes. For adult smokers, it's not like that," he said.

"With this new product, they can choose cigarettes without tar. Our hope is that with this, the government can continuously create regulations based on the principle of effectiveness," he stated.

So, this is the article for this occasion. Hopefully, an article like this can provide new insights for you vapers. Of course, if you want to share and gain more knowledge about vape, you can visit the nearest Vapeboss retail store, where our Vaporista will assist you and provide a lot of information about the world of vape. Also, if you need vape supplies and find it difficult to buy them, you can contact our retail WA for purchases with a COD system. Because Vapeboss is the most complete and trusted vape store since 2014, whatever your vape needs are definitely available there.

Aside from WA Retail, you can shop through our Online Store (click here), Shopee (click here), and Tokopedia (click here). Because there you will find all your vape necessities such as Liquids, Coils, Cotton, Batteries, and much more.

Keep Calm and Vape Like a Boss and Always stay safe while vaping and always adhere to health protocols during the current pandemic. Have a nice day Bigboss!

Source: Vapemagz