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• Study urges higher tobacco taxes to help economy, public health : Health 

Raising taxes on tobacco products in Indonesia may lead to lower cigarette consumption, fuller employment, higher economic output, and increases in government revenue, according to a study released Wednesday. The Southeast Asia Tobacco Control Alliance commissioned the study, conducted by Abdillah Ahsan, and Nurhadi Wiyono of the School of Economics at the state-run University of Indonesia, showed that tobacco tax increases of 30 to 100 per cent in Indonesia would raise cigarette prices by 7 to 26 per cent and thereby reduce cigarette consumption by 2.6 to almost 9 per cent.

"And yet, 100, 50 or 30 per cent tax increases will likely increase government revenue by 82.13, 43.3 and 24 per cent respectively. Indonesia's current tax rate is at 31 per cent," the researchers said in a statement.

The study also suggests that as people consume less cigarettes, they will tend to spend more on essential items for their health and welfare, it said.

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