Ex-minister back cigarette excise tax for sports fund-rising

JAKARTA (JP): Two former state ministers of youth affairs and sports, Hayono Isman and Abdul Gafur, have thrown their weight behind the use of an excise duty on cigarette sales to fund sports development.

Hayono, who served from 1993 to last March, said on Wednesday it was only to be be expected that the government would shoulder the burden of financing sports activities because the public was suffering in the crisis.

"In such a bad time, the government is responsible to provide funds for sports development by slicing revenues it gains from cigarette levy."

He said the government could take between Rp 10 and Rp 30 from the excise stamp on each cigarette pack purchase, but the amount could be discussed further among the minister of finance, state minister of youth affairs and sports and the Association of Indonesian Cigarette Companies.

Hayono said he proposed the scheme last year, but the finance ministry was quick to raise objections on the grounds it would disrupt the calculation of the State Budget. Revenue from the cigarette excise goes into the ministry's coffers.

The country produces more than 100 billion cigarettes annually.

The government provides about one fifth of an average Rp 150 billion needed by the National Sports Council annually to finance sports development.

Hayono said the minister of finance should back the scheme this time around.

"The fund can be used to finance not only sports development, but youth activities which are intended to prevent youths from taking illegal drugs."

He said cigarette companies should not reject the proposal because they often used sports events to promote their products.

Abdul Gafur, the country's first state minister of youth affairs and sports, underlined his support for the proposal. He even claimed to have promoted the scheme during his term from 1983 to 1988.

"It's better to raise funds from excise stamps than seek other ways which tempt people to gamble," he said after his induction as chairman of the Indonesian Soft Tennis Association.

The government rejected a planned lottery to raise funds for sports early last month, saying it could encourage people to gamble, which is illegal in Indonesia.

The deputy speaker of the House of Representatives said sports fund-raising from the scheme was bound to be a success because of the growing number of smokers in the country.

Sports council chairman Wismoyo Arismunandar chimed in with support, saying the proposal did not violate social norms. He also warned it would be impossible to gain international sports honors without funding to support development. (yan)