Statement by Press Secretary Fitzwater on the Designation of the Arabian Peninsula as a Combat Zone

The President today signed an Executive order designating the Arabian Peninsula areas, airspace, and adjacent waters as a combat zone. This designation means that for Federal tax purposes military pay received by enlisted personnel while serving in the combat zone will be exempt from income tax. For commissioned officers in the combat zone the exclusion is limited to $500 a month.

In addition, members of the armed forces in the combat zone will not have to file their income tax returns until at least 180 days after they depart the Persian Gulf.