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Zakat Deductions Cause Christians to Claim Tax Deductions
By Kazi Mahmood
JAKARTA, Nov 23 (IslamOnline) - A Christian legislator in Indonesia, Astrid S. Susanto, of the Christian-based Love the Nation Democratic Party (PDKB), on Friday urged the government to grant tax deductions to non-Muslims after its decision to make
zakat (an Islamic obligatory payment of alms to the poor) income tax deductible.
The government announced on Wednesday that tax deduction facilities were given to Muslims who paid the
zakat, relieving them of the burden of paying income taxes in the process.
Susanto welcomed the government's plan, but argued that such a decision should be applied to other religions.
Muslims are obliged to pay zakat, while Christians, both Catholics and Protestants, have a religious obligation to pay one-tenth of their income to the Church.
Christians want their contributions to be tax deductible as well, as is the case in Singapore.
However, in the tiny island nation of Singapore, besides paying the zakat, Muslims pay one tenth of their salary to a fund that manages mosques and takes care of poor Singaporeans.
In Malaysia, in addition to zakat, donations other than zakat are also deductible, a source told IslamOnline.
"It is common practice for Catholics and other Christians to pay a tithe to church establishments," Susanto said about Indonesian Christians.
On Wednesday, Minister of Religious Affairs Said Agil Husein Al Munawar said that wealth tax (zakat maal) accounting for 2.5 percent of the total yearly net income of individual Muslims, would become fully tax deductible starting in 2002.
The Indonesian Ulama's Council (MUI) also welcomed the government's plan to incorporate zakat paid by Muslims into the income tax, stressed that the policy would encourage Muslims to pay
zakat.
However, a legislator from the Golkar faction, Ruben Gobay, said the government's plan to make zakat tax deductible was a setback in terms of morality.
Meanwhile in Malaysia, the Federal Territory's zakat collection center (PPZWP) said it expects to collect RM3 million (US1.00 = RM3.80) in
zakat fitrah (obligatory Islamic tax on property) from some 650,000 Muslims in the city during the month of Ramadan.
Its operations manager, Mohamad Rais Alias, said the PPZWP expected to receive RM55 million in property
zakat this year and had so far collected RM46 million.
He said the expectation was based on the increase in public awareness apart from the success of the campaign held by the Federal Territory Islamic Religious Council (MAIWP) early this year.
Mohamad Rais said in order to facilitate the zakat payment; the PPZWP has introduced several methods including the "on-line" system held with the cooperation of the Maybank and Pos Malaysia.
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