TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Govt asked to exempt Islamic banking transactions from taxes

  • Benget Besalicto Tnb.

    The Jakarta Post

Jakarta   /   Thu, March 5 2009   /  11:04 am

The Indonesian government needs to exempt all transactions in the Islamic banking system from  taxes in order to spur its development in the country, a world’s major player in the industry says. “I think, for the Islamic finance here to grow well, the government should provide tax neutrality to any transaction made in Islamic finance,” Badlisyah Abdul Ghani, CEO of CIMB Islamic Berhad, said on Wednesday.
He said that Indonesia, which is the world’s largest Muslim country in term of population and the Southeast Asia’s largest economy, boasted a huge potential to become the biggest market for Islamic financial products.
He said that Indonesia’s law on sukuk and sharia banking, which had among others allowed government to sell Islamic bonds and banks to establish their own Islamic banking arms, had been showing to the financial world that it was ve...