KONTAN.CO.ID - JAKARTA. The government's efforts to reduce the number of smokers in Indonesia are hampered by the tobacco excise tariff policies that are contradictory with public health. One of them is the complicated tobacco excise tariff structure that makes cigarettes remain affordable. As a consequence, the smoking prevalence in Indonesia remains high and keeps increasing every year. Policy Director of Center for Indonesia’s Strategic Development Initiatives (CISDI) Olivia Herlinda said that simplification of cigarette excise tariff structure should be carried out as soon as possible. Simplification becomes relevant amidst the COVID-19 pandemic, where the country needs a higher budget for the national economic recovery program. “Simplification of the cigarette excise tariff structure in a gradual manner will reduce the variance of cigarette pricing in the market, especially the ones which are still too cheap. This is to make smokers could not easily switch to cheaper cigarettes whenever cigarette price is increased, because the type of cigarette products are not as varied,” said Olivia.
Complex cigarette excise tariff structure, main cause of high cigarette consumption
KONTAN.CO.ID - JAKARTA. The government's efforts to reduce the number of smokers in Indonesia are hampered by the tobacco excise tariff policies that are contradictory with public health. One of them is the complicated tobacco excise tariff structure that makes cigarettes remain affordable. As a consequence, the smoking prevalence in Indonesia remains high and keeps increasing every year. Policy Director of Center for Indonesia’s Strategic Development Initiatives (CISDI) Olivia Herlinda said that simplification of cigarette excise tariff structure should be carried out as soon as possible. Simplification becomes relevant amidst the COVID-19 pandemic, where the country needs a higher budget for the national economic recovery program. “Simplification of the cigarette excise tariff structure in a gradual manner will reduce the variance of cigarette pricing in the market, especially the ones which are still too cheap. This is to make smokers could not easily switch to cheaper cigarettes whenever cigarette price is increased, because the type of cigarette products are not as varied,” said Olivia.