MUI Suggests There Is a Regulation on Zakat as an Instrument to Reduce Taxes

Deputy Chairman of the MUI Cholil Nafis (second from left) at the Strengthening the Zakat, Infak, Sedekah, and Wakaf (Ziswaf) System event at the MUI Building, Central Jakarta, Tuesday (3/3/2026). ANTARA/Lintang Budiyanti Prameswari.

JAKARTA - Deputy Chairman of the Indonesian Ulema Council (MUI) Cholil Nafis suggested that there be regulations in Indonesia that regulate zakat as a tax reduction instrument so that the use of the funds of the people can be more optimal.

"In the financial system, in addition to taxes and non-taxes, philanthropy is the third instrument. In some countries such as Australia, zakat or donations can be tax reducers. In Indonesia, when inizakat can be a tax object reducer, this facility has not been optimally utilized, especially by companies," he said at the MUI fedung, Central Jakarta, Tuesday, March 3, reported by ANTARA.

Therefore, according to him, it is necessary to carry out massive socialization so that entrepreneurs can enforce the policy of paying zakat first before calculating their taxes, so that there is no double burden.

In addition to ensuring compliance with sharia in accordance with religious provisions, it is also so that zakat can be channeled to the right target, CholilNafis suggested that there be a policy that explicitly regulates in law regarding sharia advisors.

"In the Lembaga Amil Zakat (LAZ) there is already a Sharia Supervisory Board (DPS). In the context of the National Zakat Agency (Baznas), it has not been explicitly regulated in the law regarding sharia advisors. My appeal is that it is necessary to form a sharia advisor in Baznas to minimize controversy and ensure compliance with sharia, including in the distribution of zakat to eight asnaf (groups entitled to receive zakat)," he said.

He also stated that although there is no rigid provision regarding the percentage of distribution, ijtihad space (determination of sharia law) is needed to determine the scale of priority in distribution.

"Sharia advisors play a role in maintaining compliance with sharia while determining which is more entitled to be prioritized," said Cholil.

Meanwhile, the Chairman of the MUI for Philanthropy, Noor Achmad, said that the potential of national zakat was very large, reaching approximately Rp. 180 billion per year, but its utilization was not optimal.

"The main cause is that people's literacy is still low. Therefore, the movement and strengthening of the Zakat Amil Institution need to be strengthened, including the addition and optimization of existing institutions," said Noor.

Therefore, he encourages efforts to make corporate zakat as a tax reduction, considering that currently there are still many companies that have not fulfilled zakat.

"Therefore, there needs to be an appeal so that companies can carry out this obligation," said Noor.