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The economics of tobacco taxation and employment in Indonesia : health population and nutrition global practice (English)

The objective of this report is to analyze the recent employment trends in the Indonesian tobacco industry and estimate the potential effects of raising cigarette taxes on employment in the tobacco manufacturing sector. The report provides new evidence to contribute to the ongoing debate about the effects of raising cigarette taxes on tobacco sector employment. It complements the current analytical work conducted by the World Bank, in partnership with the American Cancer Society, to explore the employment conditions and livelihoods of tobacco and clove farmers and kretek rollers in Indonesia. This report is structured as follows: section one gives introduction. Section two provides a review of the global evidence on the impacts of raising cigarette taxes on population health outcomes and on the economy. Section three presents an overview of the cigarette tax reforms in Indonesia in recent years and discusses the government of Indonesia’s plans for reforming the cigarette tax structure. Section four discusses the employment trends in the tobacco industry in Indonesia, analyzes workers’ characteristics and compares workers to similar sectors and socio-demographic profiles. The section also discusses the potential impacts of raising cigarette taxes on employment by presenting results of simulations. The final section five, discusses the results in light of the current debate over cigarette tax reform in Indonesia and provides policy recommendations on the employment aspects of the reform.

Details

  • Author

    Sahadewo,Gumilang Aryo, Iglesias,Roberto Magno, Araujo,Edson Correia, Nargis,Nigar, Harimurti,Pandu, Drope,Jeffrey, Li,Qing, Durazo,Josefine, Witoelar,Firman, Sikoki,Bondan Supraptilah

  • Document Date

    2017/10/10

  • Report Number

    120352

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2017/10/11

  • Disclosure Status

    Disclosed

  • Doc Name

    health population and nutrition global practice

  • Keywords

    cigarette tax; excise tax; price elasticity of demand; tax increase; access to social safety nets; tobacco manufacturing; change in government spending; tobacco control policy; increase in cigarette tax; elasticity of labor demand; impact of tobacco control; tobacco farmers; Chronic Obstructive Pulmonary Disease; tobacco industry; price of tobacco products; amount of tax revenue; tobacco production; net employment impact; tobacco tax; tobacco tax revenue; tobacco sector; cigarette production; health care cost; tobacco control measures; excise revenue; domestic tobacco demand; number of workers; balanced tobacco economy; excise tax revenue; net employment effect; chronic respiratory disease; excise tax system; output model; increasing tax revenue; effects of tobacco; taxes on goods; health care coverage; tax rate change; effect on employment; effect of taxation; classification of country; global tobacco control; purchasing power parity; tobacco control effort; reducing tobacco consumption; health system reform; annual cigarette consumption; number of jobs; environmental tobacco smoke; cigarette tax revenue; price elasticity estimate; acute myeloid leukemia; comprehensive tobacco control; High Blood Pressure; acute respiratory infection; output per worker; primary income earner; junior high school; amount of tobacco; alternative employment opportunity; public health concern; risk of death; cash transfer program; temporary income support; price of cigarette; portion of total; consumption of cigarettes; health care treatment; factor of production; health care expenditure; percentage of income; rate of consumption; fiscal policy decision; flow of good; expansion of expenditure; change in demand; share of export; reduction of mortality; coronary heart disease; alternative agriculture; tobacco workers; cigarette price; job loss; smoking prevalence; Tobacco Taxation; domestic consumption; adult death; manufacturing sector; expenditure pattern; quitting smoking; tax burden; net importer; government revenue; cigarette demand; productivity loss; retail price; net exporter; fiscal revenue; secondhand smoke; tobacco farming; premature mortality; income growth; additional revenue; manufacturing industry; cheap cigarettes; health benefit; employment loss; summary statistic; public expenditure; positive impact; domestic production; tobacco sales; supply chain; retail sale; cigarette smoke; health outcome; net effect; adjustment cost; Cardiovascular Disease; retraining program; tobacco growing; household income; cigarette sale; employment trend; wage equation; price change; labor intensity; educational grant

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Citation

Sahadewo,Gumilang Aryo Iglesias,Roberto Magno Araujo,Edson Correia Nargis,Nigar Harimurti,Pandu Drope,Jeffrey Li,Qing Durazo,Josefine Witoelar,Firman Sikoki,Bondan Supraptilah

The economics of tobacco taxation and employment in Indonesia : health population and nutrition global practice (English). WBG Global Tobacco Control Program Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/919961507699751298/health-population-and-nutrition-global-practice