Cigareete levy for sports gets support

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)