Vapeboss – Marketing Communication Director of Hexjuice, Jimmy Muhammad, stated that the government needs to support the development of the vape industry, including its liquid products. This must be balanced with support in the form of clear and science-based regulations.

"This means that government intervention should not be limited to legalizing excise stamps for state revenue," Jimmy said in a press release on Wednesday (18/1/2023).

Since mid-2018, the Directorate General of Customs and Excise has officially granted initial permits in the form of Taxable Goods Entrepreneur Identification Numbers (NPPBKC) to vape entrepreneurs.

Under these regulations, vape liquid, which is a processed tobacco product (HPTL), is subject to an excise duty of 57 percent as an effort to intensify excise on tobacco products and serves as a government instrument to control consumption and supervise the circulation of vapes.

However, the recent raid on a home industry producing narcotic-laced liquid in Jakarta last week has sparked debate regarding the sustainability of the vape industry (especially liquid) in Indonesia. Similar cases involving illegal producers are not new.

This certainly damages the image and harms industry players who have struggled to rebuild their businesses after faltering during the COVID-19 pandemic two years ago.

Jimmy Muhammad hopes that the vape industry can continue to grow, given its enormous economic potential. This, he said, is reflected in the increase in excise revenue from processed tobacco products and others (HPTL), which rose by 588 percent from Rp 98.87 billion in 2018 to Rp 680.36 billion in 2020.

Data from the Ministry of Finance also noted that the excise value of liquid e-cigarettes reached Rp 564.36 billion in 2020. Meanwhile, as of September 2021, excise revenue from liquid EET was Rp 285.97 billion.

Therefore, illegal actions (selling drugs by piggybacking on the vape industry) should not be met with a response as if the entire vape industry is inherently dangerous and engages in similar actions. "It's like one tree is infested, but the entire plantation is burned and destroyed," he explained.

This concern is based on media reports that several members of the House of Representatives (DPR RI) urged the government to halt the circulation of e-cigarettes.

Jimmy ensured that Hexjuice and many other liquid producers have complied with government regulations to operate legally. The government must provide regulatory certainty that supports a conducive business climate.

"This includes regulations concerning illegal vape products sold freely without excise stamps. We also encourage more comprehensive and science-based research so that decisions and regulations are not based on assumptions," Jimmy said.

Jimmy cited Jordan as an example, a country that successfully passed regulations capable of bridging the needs of adult smokers, the industrial ecosystem, and state revenue from the vape industry.

This, he said, is also supported by recent research and developments. Consumers are also comfortable consuming vape products that have received approval from the Jordanian Food and Drug Administration. Vape producers also provide education for adult consumers about the risks and do not allow access for minors.

Several domestic and international literatures claim that vapes have a lower risk compared to conventional tobacco cigarettes, although not risk-free. The UK's National Health Service (NHS) has published this on its website, even recommending vapes that can help smokers reduce or even quit smoking.

According to him, research results from Bogor Agricultural University (IPB), Bandung Institute of Technology (ITB), Brawijaya University, Airlangga University, and Padjadjaran University state that these alternative tobacco products have great potential for adult smokers who have difficulty quitting smoking.

Source: Republika