Cancel tax exemption for 'harmful' funds to schools - MIC

MIC has urged the government to cancel tax exemption incentives on donations from “harmful” sectors, including alcohol companies, to schools.

This follows the controversy surrounding Tiger Beer’s involvement in a charity event organised by a Chinese school in Sepang, Selangor last week.

MIC information chief R Thinalan said the direct donations from gambling, cigarettes and liquor companies to educational institutions must be prevented at all costs.

He said such donations were made for the sake of publicity.

“The practice of channelling donations to educational institutions such as schools by these companies is not healthy at all considering that schools are places to generate positive morals and good values among our children,” Thinalan (above) told Malaysiakini.

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Last Sunday, a charity event organised by SJK(C) Tche Min in Sungai Pelek, Selangor, courted controversy after it was found that Tiger Beer was one of the donors.

Deputy Housing and Local Government Minister Aiman Athirah Sabu officiated the event. Sungai Pelek assemblyperson Lwi Kian Keong was also in attendance.

While the Education Ministry said it would investigate the matter, Deputy Education Minister Wong Kah Woh criticised Selangor PAS for stirring up the issue, accusing the party of distorting facts and inciting the emotions of the Malays.

Aiman also lashed out at her detractors over her participation in the event, labelling them as “hypocrites”.

On Tuesday, Education Minister Fadhlina Sidek ruled out providing exemptions or reviewing guidelines that bar schools from receiving funds generated from selling tobacco products and alcoholic beverages.

Yesterday, government spokesperson Fahmi Fadzil said the matter was raised at the weekly cabinet meeting and Fadhlina will clarify the issue.

It was reported that Chinese vernacular schools have been given an exemption to ministry guidelines on school funding.

The ministry’s guideline was issued in March 2018 when MIC was part of the ruling BN government.

The current guidelines forbid schools from receiving funds generated from selling tobacco products and alcoholic beverages.

No need to point fingers

In response, Thinalan today said Putrajaya can determine the distribution of donations if they were channelled through the government.

He also rejected the excuse that the direct contributions from liquor companies have been practised for decades, calling it “outdated”.

“We wish to remind all parties that there is no need to point fingers and say that the issue has happened since the previous government was in power. What is wrong is wrong, it will not be right by repeating it,” he said.

The Umno ulama council shared similar sentiments.

In a statement today, the council pointed out that the 2018 Education Ministry circular stated that the procedure of receiving donations does not involve proceeds of gambling, cigarettes, drugs, liquor and the like, as it can affect the potential of students intellectually, spiritually, emotionally and physically.

While acknowledging Aiman's apology and that there was a misunderstanding, the council expressed hopes that such an incident would not occur again.

“The council stresses and hopes it will not happen again with any government leader.

“It will give a wrong message to the people that it’s a norm to receive funds from such activities,” it said.

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