ACS applauds tax exemption order
KUCHING: The Association of Churches Sarawak (ACS) welcomes Second Finance Minister Datuk Johari Abdul Ghani’s announcement that an exemption order under Section 127 of the Income Tax Act will be issued to maintain the tax exemption status of religious institutions.
Its secretary- general Elder Ambrose Linang said ACS was glad to note that the state and federal governments had responded quite positively to its concern regarding the recent amendment to Income Tax Act 1967, which would have adverse impact on religious institutions, particularly churches in Malaysia.
“ACS wishes to thank the Deputy Chief Minister, Datuk Amar Douglas Uggah Embas,
ACS wishes to thank the Deputy Chief Minister, Datuk Amar Douglas Uggah Embas, and the state government as well as Second Minister of Finance Datuk Johari Abdul Ghani for their understanding and efforts to resolve the hardship resulting from the imposition of tax faced by non-Muslim religious institutions in Sarawak.
and the state government as well as Second Minister of Finance Datuk Johari Abdul Ghani for their understanding and efforts to resolve the hardship resulting from the imposition of tax faced by non-Muslim religious institutions in Sarawak.
“This is in line with the spirit of ‘ muhibbah’ (goodwill) and promotion of religious harmony,” Linang told The Borneo Post yesterday.
Announcing that the government will issue an exemption order to the recently amended provisions to churches registered under any written law, Linang said it means that all ACS members would be exempted from the application of the said amended provisions of the Income Tax Act 1967.
“This is because all churches under ACS are registered under the law. ACS will liaise with the Inland Revenue Board (IRB) on the details of the exemption order and will continue to further engage the government on matters pertaining to tax exemption of all churches in Sarawak.”
Following Johari’s announcement, Linang said ACS member churches were now anxiously awaiting the tax exemption order to be issued to exempt all incomes of religious institutions including rentals and donations from tax.
Linang also hoped the recent amendment would serve as a reminder to the federal government to consult religious institutions on matters concerning them before making any decision.
“We would like to call on the government to engage ACS and other religious institutions. They can hold a closed door discussion with us. We are more than happy to go to the Finance Ministry or Inland Revenue Board for the discussion.”
Kuching Chinese Community Charitable Trust Board chairman Dr Chou Chii Ming expressed relief that Johari had understood the deep concern of all religious bodies on the recent amendment to Paragraph 13(1)( b) of Schedule 6 of the Income Tax Act 1967.
Furthermore, Chou said, Johari had agreed to issue on exemption order under Section 127 of Income Tax Act 1967 so as to exempt all incomes of religious institutions registered under the Societies Act 1966 or under any written law that governs these institutions.
When asked if the latest announcement would mean that it was now back to status quo where all registered religious institutions would not be taxed, he said: “Outwardly, the promise of the minister seems to make the tax exemption status quo to the religious bodies.
“But this proposed exemption order has to be tabled in the Dewan Rakyat under Section 127(4) of the Income Tax Act and the content of exemption order has become the crux of the matter.”
Chou hoped that the exemption of all incomes of the religious bodies be put in writing without any qualification.
Meanwhile, Sarawak Sikh Temple Association president Dr Kalwinder Singh Khaira applauded and thanked the government for making this decision, which he said was just and fair to all religious institutions in the country.
“Going forward, we hope that all decisions that will have an impact and bearing on the running of religious institutions will be taken after taking into account the view and opinions of these institutions.”
Elder Ambrose Linang, Association of Churches Sarawak secretary-general