The Structure of State Levies on Tobacco: A Comparative Study of Indonesia and Thailand
| Main Authors: | Yolanda Vanessa; Department of Fiscal Administrative Science, Faculty of Administrative Science, Universitas Indonesia, Murwendah Murwendah; Department of Fiscal Administrative Science, Faculty of Administrative Science, Universitas Indonesia |
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| Other Authors: | International Indexed Publications for Students’ Final Project of Universitas Indonesia (PITTA UI) Grant of 2018 funded by the Directorate of Research and Community Service of Universitas Indonesia |
| Format: | application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Universitas Indonesia
, 2020
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| Subjects: | |
| Online Access: |
http://journal.ui.ac.id/index.php/jbb/article/view/10876 |
Daftar Isi:
- Since its introduction in more than two decades ago, tobacco control policy has been adopted worldwide notwithstandingtheir noble purpose and mission. Low and middle-income countries have seen more struggles and challenges in comparison tohigh-income countries. Using Indonesia and Thailand as cases in point, this study is aimed at to analyzing the structure of statelevies in both countries and propose alternative state levies on tobacco for Indonesia based on lesson-learned from Thailand.Thailand is acknowledged as one of the countries that has successfully implemented state levies as an instrument to controltobacco consumption over the past several decades. This study employs a qualitative approach. Data on policy in Thailand arecollected by means of literature study while that on Indonesia are collected through field observation and in-depth interviews. Thefindings show that Thailand imposes more variety state levies on tobacco that leads to higher tax burden to smokers and deemedcapable of distorting their choices in smoking. A different case exists in Indonesia where state levies policy reflecting a nonoptimalrate, so that is a merely significant source for state revenue, without any real impact on smoking prevalence in Indonesia.Both countries impose three identical levies, namely excise tax, VAT, and cigarette tax. Reflecting on the policy implementationin Thailand, Indonesia might be beneficial to adopt VAT on cigarettes with a multi-stage levy mechanism, a significant increasein tobacco excise tax rate, and other types of levies at the local government level by optimizing the application of the earmarkingtax concept in terms of spending.