Indonesian Political, Business & Finance News

Zakat as Tax Deduction Proposal Deserves Serious Study, Says Lawmaker

| | Source: REPUBLIKA Translated from Indonesian | Politics
Zakat as Tax Deduction Proposal Deserves Serious Study, Says Lawmaker
Image: REPUBLIKA

JAKARTA – Member of Commission XI of the House of Representatives (DPR) Habib Idrus Salim Aljufri has responded to a proposal from several Islamic mass organisations to make zakat a tax-deductible instrument. The Prosperous Justice Party (PKS) politician said the proposal is an idea that deserves serious study. “Zakat and tax both have noble objectives, namely delivering social justice and improving public welfare, even though the two have different foundations and mechanisms,” Habib Idrus said in a brief message to Republika.co.id on Tuesday (28/7/2026). According to Habib Idrus, the most important thing is how this policy can provide a sense of fairness for Muslims who have fulfilled their zakat obligation, without reducing the state’s capacity to finance public services and development. “Therefore, we encourage the government, DPR, the Indonesian Ulema Council (MUI), Islamic mass organisations, academics, and fiscal authorities to sit together to comprehensively study its impact, from the perspective of state revenue, tax compliance, the effectiveness of zakat collection, and the benefits for the community,” Habib Idrus said. Habib Idrus stated that if the study shows this policy can strengthen people’s welfare, improve compliance, and maintain the health of state finances, then it is only appropriate that we give our support. “For me, the main orientation of any policy is siding with the people. The public should not feel doubly burdened, but on the other hand, the state must also retain sufficient capacity to carry out its service and development functions. This is the balance we must maintain together,” Habib Idrus said.

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