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Jakarta – The Indonesian Association (APVI) is targeting sales growth of more than 6 percent this year, helped by the tobacco products excise duty (CHT) target of 2 RUpiah set by the Finance Ministry for the e-cigarette sector.
Boedy, president of the APVI Association, said the party is optimistic that CHT targets and e-cigarette sales can be achieved, as consumption continues to increase year by year. At the same time, e-cigarette consumers have reached 6 million users.
Meeting at Kota Kasablanka Hall in Jakarta on Wednesday, Boedy said: “Sales growth is now about 5%-6%. But this year our target is even bigger because the customs and revenue department’s target has to exceed 2 trillion rupiah.”
This is expressed because of the achievements and support received and achieved last year, which can reach 1.75 trillion rupiah by 2022, up from 1 trillion rupiah last year. In addition, at the beginning of this year, Boedy said that GST purchases had exceeded 1 trillion rupiah.
Even so, he does not deny that CHT and a 10 percent increase in taxes will also be a challenge to achieve this goal. Boedy said sales are still growing, but value growth is limited.
“Hopefully this proves that the market is growing, but if illegal cigarettes are still widespread, then this market will not grow significantly and will have an impact on the industry,” he said.
Previously, entrepreneurs called the e-cigarette tax, which came into effect on January 1, 2024, the third major blow that could have an impact on the industry.
Garindra Kartasasmita, General secretary of the Association of Indonesia (APVI), previously said that the emerging industry was already bearing the burden of a 15% increase in excise duty and a rise in retail prices (HJE), triggering an increase in VAT burden. “The tax on e-cigarettes is the third blow to the e-cigarette industry in 2024,” he said.
