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