Purbaya Delighted as State Coffers Grow with Increased Electronic Cigarette Excise Contributions

The growth in state revenues from electronic cigarette (REL) excise duties has surged into double digits in March 2026. This spike in excise revenues is welcome news for the government, particularly Finance Minister Purbaya Yudhi Sadewa. According to data from the Directorate General of Customs and Excise under the Ministry of Finance, REL excise receipts in March 2026 reached Rp0.29 trillion. This figure soared 11.5% compared to February 2026. Compared to the previous year, March 2025 at Rp0.24 trillion, electronic cigarette excise revenues jumped 20.8%. Overall, for January to March 2026 or the first quarter of 2026, state revenues from REL excise duties reached Rp0.92 trillion compared to the same period the previous year at Rp0.77 trillion, or a surge of 19.5%. The revenues come from open system liquid, closed system liquid, and solid groups. For the record, since 1 January 2024, electronic cigarettes have officially been subject to Tobacco Product Excise (CHT) as well as cigarette taxes (piggyback taxes), as regulated in Minister of Finance Regulation (PMK) Number 193/PMK.010/2022 on Excise Tariffs for Tobacco Products in the Form of Electronic Cigarettes and Other Tobacco Processing. This product is based on liquid, solids, or other forms heated using electrical devices, differing from conventional cigarettes that are burned.