2018年-世界发展银行全球_The_Economics_of_Tobacco_Taxation_and_Employment_in_Indonesia___Policy_Implications_44页_736kb

报告摘要

Summary of The Economics of Tobacco Taxation and Employment in Indonesia

Core Content

This technical brief explores the economic and social impacts of tobacco taxation in Indonesia, emphasizing the dual benefits of reducing tobacco use and generating public revenue. It addresses policymakers and technical teams, providing insights from the World Bank and American Cancer Society Indonesia Tobacco Employment Studies. The brief evaluates the relationship between tobacco tax increases and employment in the tobacco sector, and offers policy recommendations to optimize taxation for health and fiscal gains.

Main Points

Tobacco Consumption in Indonesia

Indonesia has one of the highest rates of cigarette consumption globally, especially among males.
In 2016, there were approximately 85 million smokers in Indonesia.
Adult male smoking prevalence was estimated at 68.1%, the highest in the world.
Youth smoking is rising, with 20% of Indonesian youth being smokers in 2016.
Smoking-related diseases account for over 21% of all chronic disease cases in the country.
Indonesia's five leading causes of death are all tobacco-related, including ischemic heart disease, cerebrovascular disease, tuberculosis, diabetes, and chronic respiratory diseases.
Secondhand smoke exposure is widespread, with over 80% of Indonesians exposed in restaurants, leading to significant health risks.

Economic Burden of Tobacco Use

Annual smoking-attributable health expenditure in Indonesia is estimated at US$1.2 billion.
This represents about 8% of total public health spending and 3.3% of total health expenditures.
Indirect economic costs, including morbidity and mortality, are estimated at US$6.8 billion annually.
Smoking leads to lost productivity, higher healthcare costs, and reduced consumption and investment.

Tobacco Taxation and Fiscal Revenue

Cigarette prices in Indonesia remain among the lowest globally, with a pack costing less than US$1.
Higher tobacco taxes can reduce consumption, increase public revenue, and improve health outcomes.
A 5% tax increase would reduce cigarette demand by 1.89% and raise government revenue by 6.41%.
A 12% tax increase and simplification of the tax structure to six tiers could reduce tobacco manufacturing employment by 0.43%, or 2,914 jobs, primarily in the handmade kretek industry.

Employment in the Tobacco Sector

Tobacco manufacturing contributes only 0.60% to overall employment and 5.3% to the manufacturing sector.
The industry is geographically concentrated in East and Central Java and West Nusa Tenggara.
Most tobacco farmers and workers rely on tobacco income only partially, with kretek households earning 43% of their income from kretek rolling.
Over 75% of tobacco-farming households derive less than 50% of their income from tobacco, and over half of clove farmers earn less than 20% from cloves.

Policy Recommendations

Accelerate Tax Simplification
- Simplify the cigarette tax structure by reducing the number of tax tiers.
Raise Tobacco Excise Taxes
- Increase excise taxes to the current legal ceiling of 57% of retail price.
- Remove the 57% ceiling and aim for WHO-recommended levels of at least 70% of retail price.
Support Transition of Affected Workers and Farmers
- Provide income support and training to kretek rollers who may lose income due to higher taxes.
- Offer credit, training, and extension services to help tobacco and clove farmers transition to more sustainable livelihoods.

Key Findings

Health Impacts: Tobacco use is a major contributor to public health issues, including NCDs, child malnutrition, and secondhand smoke-related deaths.
Economic Impacts: The economic burden of tobacco use is significant, especially for low-income individuals.
Employment Impact: While tobacco tax increases may lead to a small reduction in employment in the manufacturing sector, the net effect on the economy is likely positive due to increased spending in other sectors.
Fiscal Benefits: Higher tobacco taxes can significantly boost government revenue, which can be used for public health programs and development initiatives.

Conclusion

Bold tobacco tax increases are a powerful tool to reduce smoking rates, improve public health, and increase government revenue. By aligning tobacco taxation with WHO recommendations, Indonesia can secure longer lives, greater health equity, and more resources for development. The policy brief supports the aggressive implementation of tax reforms and the strategic use of new revenues to support vulnerable groups in the tobacco sector.