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)