The Economics of Tobacco Taxation and Employment in Indonesia : Policy Implications
Indonesia has one of the highest rates of cigarette consumption in the world. Tobacco use heavily burdens population health, undermines the quest for universal health coverage, and inflicts heavy direct and indirect economic costs. Higher tobacco t...
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| Format: | Policy Note |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/219251526070564098/policy-implications-technical-brief-May-2018 http://hdl.handle.net/10986/29814 |
| Summary: | Indonesia has one of the highest rates
of cigarette consumption in the world. Tobacco use heavily
burdens population health, undermines the quest for
universal health coverage, and inflicts heavy direct and
indirect economic costs. Higher tobacco taxes to increase
cigarette prices contribute to reducing tobacco consumption
and hence tobacco-related disease and death, while
increasing public resources for development. The Indonesian
government has recently raised tobacco tax rates. This
strategy has brought initial gains and should be
aggressively ramped up. By raising tobacco taxes toward
WHO-recommended levels (at least 70 percent of retail price)
and streamlining its tobacco excise tax structure, Indonesia
can rapidly cut smoking rates, save many lives, and boost
government revenue. Such policies would contribute to
realizing Indonesia's demographic dividend by keeping
people healthy. |
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