The Influence of Excise Tariff of Tobacco Products towards Cigarettes Industry in Indonesia: Elasticity Approach
| Main Authors: | Rahutami, Angelina Ika, Lestari, Murti |
|---|---|
| Format: | Proceeding PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2019
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| Subjects: | |
| Online Access: |
http://repository.unika.ac.id/21980/1/ICBE%20Andalas%202019.pdf http://repository.unika.ac.id/21980/ |
Daftar Isi:
- The cigarette industry was a national strategic sector that made a significant contribution to the economy, mainly government revenue. On the other hand, the cigarette industry had a big challenge from the health side. All this time, the government used excise tariffs as one of the ways to control the growth of production. This policy had an impact on the economy and of course, on the cigarette industry itself. This study was aimed to analyze the impacts of cigarette excise through the elasticity approach. Secondary data from 2011 and primary data that got from the focus group discussion was used on the analysis. The result showed that the increase of cigarette excise tariff was intended not only to reduce smoking prevalence but also to meet the target of the government budget. The continuous increase of cigarette excise was indicated to bring impacts on medium and small-scale factories that were supposed to be supported by the government. Keywords: Cigarette industry, excise tariff, economic impact, government revenue