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I refer to Ms Anne Xavier's suggestion that it would be a good gesture for the Government to grant tax deductions for donations to tsunami relief efforts (Jan 20).

Tax deductions are granted only for donations that are given to an Institution of a Public Character (IPC) and used on activities which benefit the Singapore community as a whole.

When the Government grants a (double) tax deduction, it can fund up to 44 cents for every dollar donated.

It is therefore only appropriate that the tax dollars foregone are used to benefit the Singapore community.

Donations for tsunami disaster relief are not tax deductible, like all donations to foreign causes.

Instead of funding the relief efforts indirectly via tax concessions, the Government has decided that a better way to help the victims is for the Government to provide direct financial, medical and technical assistance to the affected countries.

HAN KOK JUAN
DIRECTOR (SOCIAL & SECURITY PROGRAMMES)
MINISTRY OF FINANCE