Religious institutions will not be taxed under exemption order

KUCHING: The government has exempted religious institutions registered under the Registrar of Societies or under any written laws regulating the institutions clearing up the confusion among the organisat ions a f fected fol lowing the amendment to paragraph 13 (1) Table 6 of the Income Tax Act 1967.

Second Finance Minister Datuk Johari Abdul Ghani made the announcement after meeting representatives of religious institutions which was also attended by the Inland Revenue Board chief executive officer Datuk Sabin Samitah on Monday.

Johari said the government had agreed to issue an exemption order under section 127 of Income Tax Act 1967.

“The order will be issued very soon,” he said in a statement here yesterday.

The concern among religious bodies that their income including donations would be taxed after the amendment was tabled and passed during the last session in Parliament was highlighted by The Borneo Post.

Since then the issue had been taken up by representatives of religious and charitable bodies and politicians leading to the meeting on Monday.

During the dialogue the minister explained the government’s intention behind the amendment.

He told the representatives of the religious bodies that the amendment was not intended to revoke tax exemption status current ly enjoyed by religious institutions and the government is addressing their concern by issuing the exemption order.

However, Johari added to qualify for the exemption religious organisations had to be registered in line with the government’s intention that religious institutions are well managed and not abused by irresponsible parties.