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Clarification needed on Kharaj tax for non-Muslims
KUALA LUMPUR, Mon. _ The Pas-led Terengganu Government has to clearly explain how it planned to impose the new kharaj tax on non-Muslims due to confusion among experts. When asked to comment whether the Federal Government's approval would be needed to make way for the imposition of an Islamic tax on non-Muslims, First Finance Minister Tun Daim Zainuddin said the matter would have to be studied. "I don't know whether they have to consult ... I haven't looked at the Federal Constitution (on this matter) yet," he told a Press conference after launching the Inland Revenue Board's Self Assessment Logo today. The announcement requiring non-Muslims in Terengganu to pay an additional tax known as kharaj, and zakat (tithe) on their economic activities was made on Friday by State Menteri Besar Abdul Hadi Awang in Kuala Terengganu. Kharaj, introduced in the early days of Islam, was a land tax paid by non-Muslims whose lands had been conquered by Muslims. It was practised to encourage conversion. However, when the number of conversions rose, causing a reduction in tax collection, the law was amended. Chief secretary to the Treasury, Datuk Othman Mohd Rijal, said the matter have not been examined from a Constitutional standpoint, and the State Government must first submit a proposal to the Inland Revenue Board and the Attorney General's Chambers. The Federal authorities could not rally comment on the matter until the proposal was made, he said. "This is because the policy to impose kharaj comes from Pas' political interpretation." Muslim Lawyers Association president Zaiton Osman said today a clear definition had to be obtained from the said Government on what the new tax would be for. "I am unclear if the new tax is for all property owned, or income tax. "If they mean kharaj per se, which is defined as quit rent, then everybody is already paying it. "I want to make sure I understand clearly what they (the Terengganu Government) mean by imposing kharaj on non-Muslims," she said, adding that she would comment on the matter tomorrow. The Pas-led Terengganu Government yesterday said non-Muslims would be imposed with a five to 10 per cent on their business profits. Meanwhile, a Syariah law professor at a local university said kharaj was defined as quit rent, currently being paid by all Muslims and non-Muslims. |
