Proceedings of 8th Asian Business Research Conference
1 - 2 April 2013, Bangkok, Thailand, ISBN: 978-1-922069-20-7
Tobacco Tax in Indonesia
Pualayuka Sumihosa, Peggy Hariwan and Bintang Rizky Abdullah M.S.
Fiscal policy in Indonesia is a macroeconomic policy affects the real sector,
where the sector produces goods and services. The effect of fiscal policy on
the economy consists of short-term effects and long term effects. Short-term
effect is the initial or direct effects of the policy itself, while the long-term effect
is the initial effect and subsequent effects is called multiplier effect (multiplier)
of the policy.
Fiscal policy is important because it is associated with a proposition that tax
setting in certain amount of the taxpayer will increase government revenue so
that government becomes more able to increase economic growth and
equitable distribution of income
One of the strengths of the domestic tax in Indonesia is customs that must be
excavated the strength as revenues in the state’s budget. Indonesia as a
country with has a relatively low tax should be empowered the capability of
payment from tobacco and ethyl alcohol and other alternatives.
The policy in 2012 regarding the increase in tobacco tax should be analyzed
quantitatively and qualitatively from all aspects.
Keywords: fiscal policy, tobacco tax, tax rate increase
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Peggy Hariwan, Universitas Padjadjaran, Indonesia. E-mail: e_gg1@yahoo.com