Indonesian Political, Business & Finance News

Govt wants to focus on 'zakat' first: Minister

| Source: JP

Govt wants to focus on 'zakat' first: Minister

Fitri Wulandari, The Jakarta Post, Jakarta

Minister of Religious Affairs Said Agil Husein Al Munawar said
on Sunday that the government still had no concrete plan to
extend its tax-deductible policy on Islamic alms, or zakat, to
similar kinds of alms-giving in other religions.

"God willing, we will arrange it later. We will go ahead with
the zakat first. We still have a lot of things to do," Said Agil
told reporters over the weekend during a ceremony marking World
AIDS Day.

Earlier, Said had announced that zakat, donations to charity
that Muslims are obliged by their religion to pay, would be
income tax-deductible starting January.

According to Muslim law, zakat donations should account for
2.5 percent of net income per year. Muslims usually pay zakat to
government-sanctioned agencies, mosques, orphanages or directly
to the needy.

Other religious groups have reportedly called for the
application of a similar policy to them, arguing that they also
have to encourage their followers to be more generous in giving
alms.

"We will do it one by one," Said stressed.

President Megawati Soekarnoputri is slated to inaugurate a new
zakat agency on Monday. The agency will oversee the collection
and disbursement of zakat. Similar agencies will also be set up
in the provinces.

According to Said, during the inauguration ceremony the
President and her husband, Taufik Kiemas, would donate their
zakat to symbolize the beginning of a zakat awareness campaign
aimed at alleviating poverty.

Another issue concerning the policy is that it might be open
to corruption as the funds collected from zakat will be managed
by a government agency.

Said stressed that the government would do its utmost to
prevent any misappropriation of zakat funds.

"There will be government-sanctioned agencies who will report
on zakat. Transparency, honesty, and accuracy in carrying out the
work is our target," Said remarked.

He added that to ensure transparency, the agencies would also
be audited and supervised by various parties.

"There will be public accountants. The legislators will
supervise it. As a minister, I will be the first to be
questioned. So, God willing, there will be no misappropriation,"
Said stressed.

He said that the Directorate General of Taxation had started
disseminating information on the new policy.

Said further revealed that the government was considering
presenting gifts as a mark of appreciation to those who regularly
paid their zakat.

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