Alms exempted from tax

Alms exempted from tax

JAKARTA (JP): Alms and other forms of donations collected by Baziz, an institution established by the government to collect Islamic alms and other charity funds, are exempted from value added and income taxes.

Tax Director General Fuad Bawazier said yesterday that the payment or the distribution of alms and other donations is a religion-related service.

"It, therefore, is exempted from tax payment," he said in response to the Jakarta governor's requirement to exempt scholarships provided by Baziz to elementary school students.

According to the existing regulation, the government treasury is required to collect value added tax and income tax on the payments of goods for state budgets. (hen)