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State to Boost Zakat Revenue

Monday, 11 September 2000

Muslim taxpayers may now deduct the sum of their zakat (obligatory religious alms) from their overall taxes due to the state. The government is set to regulate this new tax arrangement.
. tempo : 167592488350

The Islamic economic system has finally gained a foothold in the fiscal affairs of the state. The zakat or religious tax, one of Islam’s fiscal instruments, is now regulated under Law No. 38/1999. In the past, the collection and disbursement of zakat was spelled out only in a regulation of the minister of religious affairs. Under the new law, Muslim taxpayers may deduct the amount of zakat paid out from the sum of the tax due. Law No. 17

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