Indonesia's Zakat to Be Treated as Tax Credit in New Fiscal Proposal

Persatuan Islam (PERSIS) has welcomed a proposal to allow zakat payments to be used as a direct tax credit, rather than merely a tax deduction. The idea, revived by the National Sharia Council of the Indonesian Ulema Council (DSN MUI), aims to integrate the Islamic charitable levy with the state’s fiscal system, enhancing social justice and encouraging greater zakat compliance.

PERSIS Secretary General Dr. H. Haris Muslim said the policy would provide legal certainty, strengthen public welfare, and increase the contribution of the Muslim community to national development. LAZ PERSIS chief Angga Nugraha added that the credit would incentivise zakat through professional amil institutions, linking zakat payments to reduced tax liabilities for donors.