Fri, 12 Jan 2001

'Sin tax' raised as idea to boost funds

JAKARTA (JP): It is widely known that sports development needs lots of money to support its programs. Unfortunately, the National Sports Council (KONI), its provincial chapters and sports organizations have yet to be able to raise fund to finance their needs.

Therefore, an idea came up on Thursday to propose to the government to apply "sin tax" to support sports development needs and also education, health and other social services needs.

Political observer Andi Mallarangeng commented to the idea that "sin tax" would not only cover gambling but also prostitution and cigarettes as has been applied in several countries.

"Activities regarded as sinful by religion or the community including gambling, prostitution or perhaps cigarettes can have a high tax imposed as a cross subsidy to finance education, sports, health and other social services," he told reporters in the sidelines of a discussion on the sports bill.

"If the government wants to apply the tax, it must issue a new law on it. Then if it's approved and applied, the government must specify in which sector the tax will be used. But the money does not go to the State or Provincial Budget but goes directly to the specific sectors that have been mentioned in the law."

Ismangoen Notosapoetro, a member of the House of Representatives' Commission VI on Human Recourses and Religious Affairs, said that the idea has never been brought up to the House as he was pessimistic about the possibility that the idea would be approved by the House members.

"Now we still have the bill No.7/1974 forbidding gambling throughout the country. It must be changed or improved. Actually the idea is not a matter of agreeing or disagreeing, sinful or innocent, going to heaven or hell. It's about being realistic," said Ismangoen, who was formerly a vice chairman of KONI Central Java chapter.

"Illegally, many Indonesians are still gambling all throughout the cities and villages. But the government pretends not to know. Imagine how many Indonesians spend their money in gambling in Genting Highlands in Malaysia, Macau, Las Vegas or Monaco."

"I think it would be better if we can provide an isolated amusement center, which includes gambling in it, to provide for the gambling needs of our people. The management of the center can forbid certain people such as Moslems or children from entering the area as did Malaysia in the Genting Highlands."

"If the government can apply high taxes on gambling, imagine how much money we can receive to support sports development, the education budget and other necessities."

Ismangoen recalled that former Jakarta governor Ali Sadikin had successfully raised funds to build the city back in the 1970s. (yan)