Revealed — A Roadmap to Defeat Tobacco Tax & Keep Indonesians Addicted

By Ulysses DorotheoBANGKOK, Thailand, Apr 11 2019 (IPS) The image of a smoking toddler from Indonesia horrified the world but did little to motivate local policy makers to enact measures to protect children and youth from the harms of tobacco use. Indonesia has one of the world’s highest smoking rates where two out of three men and about 40 percent of adolescent boys smoke. Cigarette prices in Indonesia are among the cheapest in the region, where a pack of Marlboros is sold for as little as US$ 1.70, while local brands or loose sticks are dirt cheap ($ 0.05 per stick), easily affordable to the nation’s 65 million smokers. Indonesia has a complex tobacco taxation structure of 12-tiers, dividing between machine-made white cigarettes, machine-made Kretek cigarettes, hand-rolled cigarettes, size of manufacturing factories, and more. Annual increases in tobacco tax are small, having little impact on cigarette prices to reduce consumption, especially among the poor, who form the bulk of smokers. In 2017, the Ministry of Finance issued a Regulation on Tobacco Excise Tax to increase tax for 2018 and at the same time stipulated a roadmap for the simplification of tax tiers, reducing from 12 tiers to 5 tiers by 2021. The tier simplification roadmap was viewed as a win for public health, as fewer tiers will close the tax and price gaps and reduce the incentive for smokers to switch to cheaper cigarettes. However, a year later, in November 2018, the simplification roadmap was sudden...
Source: IPS Inter Press Service - Health - Category: International Medicine & Public Health Authors: Tags: Aid Development & Aid Economy & Trade Environment Featured Global Headlines Health TerraViva United Nations Women's Health Source Type: news