Smoking vs. Economy: Myths and Facts

The tobacco industry contributes to the large amount of state income.
Facts:State paying more for cigarettes than the income it receives from the tobacco industry. Research from the World Bank have shown that cigarette merupakankerugian mandatory for almost all countries. Revenue received by the state from the tobacco industry (taxes, etc.) may be a large amount, but the direct and indirect losses caused by tobacco consumption is much greater.High costs should be issued to pay the cost of healing the diseases caused by smoking, absence from work, loss of productivity and income, premature death, and also makes people poorer longer because they spend the money to buy cigarettes.Another major cost that is not easy to pin down, including reduced quality of life for smokers and those who become passive smokers. Besides suffering to those who have lost loved ones due to smoking. All this is a high cost to be borne.
Myth:Reducing cigarette consumption is an issue that can only be overcome by the rich countries.
Facts:Currently approximately 80% of smokers live in developing countries and this number is growing rapidly in the past few decades alone. Estimated that by 2020, 70% of all deaths caused by smoking will occur in developing countries, up from the current level of 50%. This means that in the coming decades developing countries will face higher costs to finance the health care of smokers and loss of productivity.
Myth:Setting stricter against tobacco industry will result in the loss of jobs at the tobacco farmers and cigarette manufacturers.
Facts:Predictions indicate clearly that global consumption will increase in the next three decades, even with the implementation of tobacco regulation worldwide. Indeed, the reduced consumption of cigarettes, then one day it will lead to less work at the tobacco farmers. But this happens in a matter of decades, not overnight. Therefore, the government will have plenty of opportunity to plan for a sustainable and orderly transition.The independent economists who have studied the tobacco industry claims, concluded that the industry greatly exaggerate the potential job losses from setting more stringent cigarettes. In many countries, the production of cigarettes is only a small part of their economy. Research conducted by the World Bank demonstrate that in general the state will not get new unemployed when consumption is reduced. Some states will actually gain new advantages for cigarette consumers will allocate the money to purchase other goods and services. This course will open up the opportunity for the creation of new jobs.
Myth:The government will lose revenue if they raise taxes on the tobacco industry because fewer people are going to buy cigarettes.
Facts:The evidence is clear: calculations show that higher taxes will reduce the consumption of cigarettes does not reduce government revenue but, quite the opposite. This can occur because of falling consumer of cigarettes is not worth the amount of the tax increase. Consumers who are addicted to cigarettes will usually slow to respond to rising prices (will still buy). Furthermore, the amount of money saved by those who quit smoking will be used to purchase other items (the government will continue to receive income). Experience says that raising taxes on cigarettes, no matter how high, never cause a reduction in government revenues.
Myth:Higher cigarette taxes would lead to smuggling.
Facts:The tobacco industry often argue that higher taxes will encourage smuggling of cigarettes from states with lower cigarette taxes, which would make the edges higher cigarette consumption and reduced government revenues.Although smuggling is a serious matter, the 1999 World Bank report curbing the Epidemic still concluded that higher cigarette taxes will reduce consumption and raise government revenues. The exact steps for the government is to fight crime and not compromising on the cigarette tax hike.In addition there are claims that say that the industry is also involved in smuggling cigarettes. Claims such as these should be taken seriously.
Myth:Cigarette addiction is so high, raising the cigarette tax will not reduce the demand for cigarettes. Therefore do not need to raise taxes on cigarettes.
Facts:Raising cigarette taxes will reduce smoking rates and reduce deaths caused by smoking. The increase in cigarette prices would make some smokers to quit and prevent others to be smokers or to prevent others become regular smokers. The increase in the cigarette tax would also reduce the number of people who return to smoking and reducing cigarette consumption in people who still smoke. Children and young people are the group that is sensitive to cigarette price increases, therefore, they will reduce the purchasing cigarettes when cigarette tax is increased.In addition people with low opinion are also more sensitive to price increases, and therefore cigarette tax increase will greatly affect the purchase of cigarettes in developing countries.The model developed by the World Bank in its report curbing the Epidemic showed increases in cigarette prices rise by 10% due to increase in the cigarette tax, would make the 40 million people living in 1995 to quit smoking and prevented at least 10 million deaths due to tobacco.
Myth:The government does not need to raise taxes on cigarettes will rise because it will hurt low-income consumers.
Facts:Cigarette companies argue that the price of cigarettes should not be raised because if so would hurt low-income consumers. However, research shows that low-income people are victims of the most disadvantaged cigarettes. Because smoking will aggravate the burden of life, increased mortality, increase health care costs they must bear and wasted wages to buy cigarettes.Low income people most able to benefit from the high price of cigarettes because it will make them easier to stop smoking, reduce, or avoid getting addicted to cigarettes because of their limited ability to buy. Another advantage of the higher cigarette tax is to be used for welfare programs for the poor.
Myth:Smokers alone bear the burden of the cost of smoking.
Facts:Membenani smokers than non-smokers. Evidence of the costs of non-smokers such as medical costs, disruption, and irritation obtained from cigarette smoke.Reviews in rich countries revealed that smokers weigh on health insurance than those who did not smoke (although age smokers usually shorter). If health insurance is paid by the people (such as employees' social security), then the smokers must take charge of smoking to others as well.


 Smoking Actually Make Tekor StateJakarta. Many argue that because the government's tobacco control difficulty getting a huge influx of cigarettes. In fact, if the count is calculated, it makes the loss cigarettes alias overdrawn.Acting Minister of Health, Prof.. dr. Gufron Mukti Ali, MSc, PhD said that the actual cost incurred for cigarettes, including medical expenses and lost productivity due to illness, not worth even much greater than that received by the state excise tax.When calculated, the cigarette tax in 2010 and rose about 50 trillion to 70 trillion in 2011. While the cost to be incurred for smoking and its effects, could reach 230 trillion."In the state and the nation in particular suffered losses. Count-calculation we can see how much it costs to cigarettes a day, a month, a year. Then how much pain, what is the cost of lost productivity due to illness, then the cost of the family. Well all of that, more or less 230 trillion, while we see that about 70 trillion tax, "said Prof. dr. Gufron Mukti Ali, MSc, PhD, Acting Minister of Health, on the sidelines of the WHO World No Tobacco Delivery Day Award to former Health Minister Endang Sedyaningsih Alm in the Office of Ministry of Health, Jakarta, Wednesday (13/06/2012).Direct and indirect costs incurred for a cigarette even more than 3 times higher than that received by the state excise tax. This means that smoking makes the loss.On the other hand, many people are reluctant to quit smoking because of the health hazards that threaten not come immediately, but slowly. Moreover, the price of cigarettes in Indonesia relatively inexpensive when compared to other countries.But smoking has no health benefits at all. Even if the count is calculated, the cost for cigarette burn for 10 years it can be used to finance the hajj to the holy land."Should the price of cigarettes is adjusted so, so small children and who really can not afford not push yourself, then the money spent on cigarettes," concludes Prof. Ali Gufron
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