Indonesia Tax Authority Expands Enforcement, Seeks Zakat Tax Credit

The Directorate General of Taxes (DJP) of Indonesia issued Surat Edaran SE-8/PJ/2026, tightening compliance by targeting taxpayers who are not yet registered. The new guidelines allow the agency to collect data from bank accounts, vehicle registration plates, remote‑sensing imagery, web‑scraping and other digital sources, and to extend field monitoring to the village level by involving Babinsa (army village advisors) and Bhabinkamtibmas (police community officers).

At the same time, the National Zakat Agency (Baznas) is urging the tax authority to treat zakat contributions made through official channels as a direct tax credit rather than a deduction. Baznas proposes a pilot program in Aceh to test the scheme, arguing it could boost compliance and increase public revenues.

Parliamentarians from Commission VIII and I have voiced both support for integrating zakat with the tax system and concern that involving the military in tax oversight could intimidate taxpayers. The debate underscores a broader effort to expand Indonesia’s tax base while ensuring the new mechanisms respect democratic norms.