HIGHLIGHTS

  • Excise taxes on tobacco products are common globally as a means to reduce consumption
  • Some countries ‘earmark’ funds from tobacco taxation for specific purposes; some health related, others more general
  • Aceso Global is undertaking a multi-phase review of current and future trends in tobacco taxation and earmarking among Asian countries in order to identify areas of strategic importance for future policymakers

Tobacco use remains prevalent in much of Asia and poses a serious public health problem. According to recent data from WHO, over 40 percent of men in the world’s two most populous countries, China and India, are current tobacco users. In Indonesia, the world’s fourth most populous country, tobacco use amongst men stands at a striking 71 percent, highlighting the challenge as well as an opportunity to address both prevention through taxation, and enhanced treatment by targeting tobacco tax revenue for healthcare. While many countries across Asia have imposed taxes on tobacco in an effort to improve health status and longevity, little is known about how funds are actually spent. Defining what factors could induce countries to consider either expanding investments in healthcare or in tobacco-related services is important to determining the impact that this ever-growing portion of tax revenues achieve across the region.

Support from: Novartis

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