Guidelines on 'poverty' fund raising issued

Guidelines on 'poverty' fund raising issued

JAKARTA (JP): The Director General of Taxes Fuad Bawazier
yesterday dismissed speculation that his office will deduct 2
percent off every after-tax income of more than Rp 100 million
(US$43,290) for the state-sponsored poverty alleviation program.

At a hearing with the House of Representatives' banking and
finance commission, Fuad noted that his office will only record
individuals and companies with after-tax incomes of more than Rp
100 million a year and their donations.

He said he had sent copies of Circular Letter No. 04/PJ./1996,
dated Jan. 29, to the heads of tax service offices all over the
country, informing them of the mechanisms of donation
collections.

The circular supports the implementation of the Minister of
Finance's decree and the Presidential decree, which both call on
individuals and companies with after-tax incomes of more than Rp
100 million a year to donate up to 2 percent of their earnings
for the poverty eradication program.

Fuad said donors can transfer their donations directly to the
accounts of the Dana Sejahtera Mandiri Foundation at the Harmoni,
Jakarta, branch of the state-owned Bank Negara Indonesia 1946
(BNI). The account number is 0850801.001.

The donors are required to submit a copy of the transfer
documents to the nearest tax office for data collection.

The Dana Sejahtera Mandiri Foundation was established last
moth by President Soeharto, together with State Minister of
Population Haryono Suyono and a number of local tycoons, with a
paid-up capital of Rp 250 million.

It was formed especially to collect funds raised on the basis
of the presidential decree.

At the same hearing, Minister of Finance Mar'ie Muhammad
assured the commission on the transparency of the foundation in
managing the funds.

"The management and allocation of the funds will be
transparent, and the foundation will be audited by certified
public accountants," he said.

In support of Mar'ie's statement, Fuad said his office will
closely monitor the donation collections. Every tax office is
required to prepare reports on the development of the donation
collections on a quarterly basis.

Fuad said that his office will also send letters to the
targeted taxpayers every new year, calling them to participate in
the poverty alleviation program.

According to official data, in 1994 there were 6,572 corporate
taxpayers and 4,553 individual taxpayers with after-tax incomes
of more than Rp 100 million a year.

The fund raising will start in March, the deadline for the
filing of the 1995 income tax returns.

Meanwhile, Haryono was quoted by Antara as saying yesterday
that the foundation is ready to help poor families with an
initial fund of Rp 100 billion. The foundation will provide each
poor family with a subsidized loan of Rp 100,000, with an
interest rate of six percent per annum. (rid)