South Africa is a success story for many. We came through the trauma of overcoming apartheid without a civil war. Today, we are experiencing a boom in the economy, we won the World Cup Rugby, we have numerous success stories in business, politics and most spheres of life in this country.
We unfortunately also have the horror stories – baby rapes, murders and so on, and we have the sad part of our country, the poor, AIDS, the neglected side of our African Renaissance.
Religion plays a major role in creating a better environment. You will find across the world, people dedicated to spiritual improvement are more focused on helping others than usual. It becomes their life’s work.
In South Africa this is no different. However, we have one drawback. Tax. Religions are usually tax exempt under the law in South Africa. This means they don’t pay income tax. To help their communities and our society, most religions rely on donations. Parishioners, or members, of religious denominations are relieved of donations tax when donating to their religions. However, funny as it may seem, you cannot claim exemption on your donations to your Church on your income tax return.
Yet, in the same breath, government recognises that religions play both a major role in the improvement of an individuals life as well as the overall community. So when a parishioner donates or contributes in his or her way, according to their particular religion, would it not be wise for government to allow exemption from tax? If you donated to some welfare activities, AIDS and most educational activities, per part 2 of the Ninth Schedule of our Income Tax Act, you now get 10% deductible from your taxable income. This is a section 18A deduction. Why not the same for the investment, or donation to, something that not only improves your life, makes your more productive, more ethical – and ultimately saves the government money.
It would seem to make a lot of sense that religions should enjoy the same, Section 18A SHOULD apply to religions.
Your comments?
