Indonesia Publishes 2023-2024 E-cigarette and HPTL Consumption Tax Regulations

Recently, the Indonesian government issued regulations on the consumption tax and retail price (HJE) restrictions of electronic cigarette products (REL) and other tobacco processed products (HPTL) in 2023-2024. In the next two years, the consumption tax of electronic cigarette products(Heated Tabak Chinese supplier) and other tobacco processed products The average annual increase is 15% and 6%.


PMK 192/2022 stipulates changes regarding the determination of CHT (Excise Tax on Tobacco) rates. In the old regulation, it was stated only that the CHT duty on domestic production and import was fixed in the amount of Rs per milliliter or per gram unit. Excise duty rates are based on details of the type of tobacco product(Heat Not Burn heatsticks).


PMK 192/2022 stipulates it in more detail: domestically produced and imported CHT tariffs are determined using the amount of rupees, for tobacco products(HNB tobacco heatsticks manufacturer) in the form of open system liquid electronic cigarettes, in the form of closed system liquid electronic cigarettes included in tobacco products The liquid in the box, in milliliters;


The gram unit applies to tobacco solids present in the stem or capsule of a tobacco product in the form of solid e-cigarettes, and tobacco products in the form of other tobacco processed products. Units of milliliters for tobacco products in the form of closed system liquid e-cigarettes and units of grams of tobacco solids contained in the stem or capsule of solid e-cigarettes, rounded to the nearest tenth.


PMK 192/2022 deletes Article 8 of PMK 193/2021. The section states that if the manufacturer or importer concerned has not used the Excise Stamp Order Document to fulfill its Excise Stamp Order for 6 consecutive months, or exported tobacco products using a document notifying the release of dutiable goods, and the factory has not paid excise duty for export purposes, then The provisions of the CHT tariff were declared void.


Additionally, between Chapters III and V, Chapter IIIA is on tobacco product brands. Section 9A states that brands of tobacco products are provided by the head of the office when setting the CHT rate. Tobacco product markings consist of an arrangement of letters and/or numbers consisting of several characters usually taken from the name of the manufacturer/importer and other information relevant to excise and other levies.


Additional information relating to excise and other taxes shall include at least the excise rate, retail price, package content, marketing purpose, and the physical form of the excise stamp used to distinguish the tobacco product brand owned by the tobacco product manufacturer or importer. The procedure for determining the brands of tobacco products will be prescribed by the Director-General of Customs and Excise.


For each type of domestic and imported tobacco products in 2023, the CHT tariff and minimum HJE limit per unit of tobacco products will be effective from January 1, 2023 to December 31, 2023; for tobacco products in 2024, each Types of CHT tariffs and minimum HJE quotas come into effect from 1 January 2024.


Article 11(3) of PMK 19212022 states: “This ministerial regulation shall come into force on the date of promulgation (15 December 2022).”