Resources

Impact of an E-Cigarette Tax on Cigarette Use in Indonesia

09/2020

On October 1, 2018, Indonesia implemented its first regulation on e-cigarettes, written as a 57% tax on the retail price of e-cigarette liquid. This would exceed the 40% average tax on conventional cigarettes. Economics suggest that if cigarettes and e-cigarettes are substitute products, raising the price of e-cigarettes could drive some people to use cigarettes instead. This would be detrimental to public health. This project used online surveys in a pre-post study design to examine how the 2018 Indonesian tax on e-cigarette liquid affected use of cigarettes and e-cigarettes.