Govt urged to raise tobacco excise to more than 50 percent

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Tue, 06/23/2009 3:54 PM  |  Business

The University of Indonesia's Demographic Institute has urged the government to raise the tax on tobacco to the maximum limit of 57 percent to protect young smokers.

"The tax can be used for other things. Instead of focusing on the excise law, the government should think about other issues such as health," researcher Suahasil Nazara said in a seminar Tuesday.

Based on the tobacco industry's roadmap, the government will prioritize labor over state revenue and health until 2010.

The priorities will shift to state revenue, health and labor from 2010 to 2015. In 2015, health would become the main priority, while labor and state revenue may receive equal treatment.

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