Abstract

The aims of this research were to find out the effects of poverty on cigarette consumption in Central Java in 2013 and to recognize the effects of tax cigarette on cigarette consumption in Central Java in 2013. The type of the data used was secondary data. The analysis method used was the regression of Ordinary Least Square (OLS) with the cross section data of 2013 in 35 Districts of Central Java Province.The research results show that when the Poverty Line increases, it increases cigarette consumption. The variable on Poverty Line has effect on cigarette consumption in Central Java in 2013. The variable of cigarette tax has positive insignificant value. The variables of poverty and cigarette tax are able to explain the level of cigarette consumption of 0.1263%, and the remaining variables are explained by the other variables. F- statistic is 2,31, F-table is 1,37, and t-table is 2.034. Based on the research results, it can be concluded that there is a significant association between cigarette consumption and poverty in Central Java in 2013. When cigarette consumption rose, it increased the poverty in Central Java in 2013. The association between cigarette consumption and cigarette tax in Central Java in 2013 was not significant but had positive value. It means that the tax policy in Central Java is not able to reduce cigarette consumption in Central Java in 2013. Although there has been a cigarette tax, the cigarette consumption continues to increase.

Highlights

  • According to The Tobacco Atlas 3rd edition (2009), ASEAN is an area with 10 percent world smokers and causing global deaths due to tobacco

  • According to the World Health Organization (WHO), the prevalence of adults who smoke in Indonesia is quite high at 29 percent

  • Data collection methods used in this study are: Literature study from associated cigarette consumption and poverty, as well as other sources such as documents in BPS, Riskesdas, general manual on the use of taxes on health cigarettes, which are linked to this research

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Summary

Introduction

According to The Tobacco Atlas 3rd edition (2009), ASEAN is an area with 10 percent world smokers and causing global deaths due to tobacco. Percentage of smokers in the population of the largest ASEAN countries in Indonesia (46.16%), Philippines (16.62%), Vietnam (14.11%), Myanmar (8.73%), Thailand (7.74%), Malaysia (2.90%), Cambodia (2.07%), Laos (1.23%), Singapore (0.39%), and Brunei (0.04%). According to the World Health Organization (WHO), the prevalence of adults who smoke in Indonesia is quite high at 29 percent. The results of the Central Java Provincial Health Research (Riskesdas 2007) stated that teenagers (15-19 years old) who smoked daily were 24.3 percent, with average cigarretes consumption is 8.9 cigarettes per days. Cigarette consumption is a concern for developing countries such as Indonesia and as contributors to poverty. According to the Central Statistics Bureau (BPS), poverty in Indonesia can be reduced if cigarette consumption in Indonesia reduced. Consumption of cigarettes poses a danger to health level because the ingredients in cigarettes has substances that are harmful to health

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