Cigareete levy for sports gets support
JAKARTA (JP): The House of Representatives (DPR) supported on Tuesday the government's move to dust off an old proposal for an excise duty on cigarette sales to fund sports development.
The chairman of House Commission VII for education, culture, religion, youth affairs and sports, Muchsin, said in a hearing with State Minister of Youth Affairs and Sports Agung Laksono that no other schemes appeared more feasible in the current economic crisis than shaving off a portion from cigarette sales.
"We cannot rely solely on the State Budget or public participation because everybody is now focusing on how to secure basic commodities," Muchsin of the United Development Party faction said.
The government manages to provide just one fifth of an average Rp 150 billion needed by the National Sports Council annually to finance sports development in the country.
Agung's predecessor Hayono Isman was the first to publicly propose the scheme last year. According to Hayono, the government could slice Rp 10 off each excise stamp to fund the sports development program. Indonesia produces more than 100 billion cigarettes a year.
The government rejected the plan on the grounds it would change the State Budget. The government always applies a fixed estimate of tax income, including the cigarette excise, in drawing up the annual budget.
Agung reinstated the proposal following the government's rejection of a planned lottery to raise funds for sports early last month. The lottery idea kicked up a furor because some said it smacked of gambling.
"Smoking is not forbidden in the country but it endangers its addicts and other people. To make amends for the harm it carries, every cigarette must help the community develop sports," Agung told the House.
"This concept will not lay burdens on either the public or smokers."
Muchsin suggested that Agung devise a detailed proposal before his commission could discuss it further with other commissions on finance and related ministries.
The cash-strapped sports council has received about 30 drafts on how to raise funds for sports since the government discarded the lottery idea.
The council's official in charge of planning and budgetary matters, Sudharno, said recently the sports governing body was studying a proposal to gather funds from accident insurance paid by motorists using toll roads.
During Tuesday's hearing, the House also urged the 19th Southeast Asian (SEA) Games underwriting consortium to pay their outstanding debts from last year's event as soon as possible.
"If they fail to pay the debts, people will no longer be prepared to join any sports-related fund raising programs because they feel they have been cheated," Muchsin said.
The consortium, led by former president Soeharto's son Bambang Trihatmodjo, owes Rp 35 billion in reforestation funds and Rp 11 billion to the Gelora Senayan Management Board, the rowing venue Jatiluhur water reservoir authorities and hotels which accommodated athletes during the event. (yan)