HTQ Foundation Co-Hosts National Forum on
Zakat as a Full Tax Credit

JAKARTA — The Halaqah Tadarus Al-Qur'an Foundation (HTQ Foundation), together with the National Amil Zakat Agency (BAZNAS), Commission VIII of the Indonesian House of Representatives (DPR RI), and Lazismu, hosted a Focus Group Discussion on Philanthropy Journalism titled "Full Tax Deduction (Tax Credit): Opportunities and Challenges" at the Library Hall of Gedung Pusat Dakwah Muhammadiyah, Menteng, Central Jakarta, on Saturday, 18 July 2026.

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The forum brought together policymakers, zakat administrators, academics, and journalists around a question that has gained increasing urgency: should zakat paid through official institutions directly reduce a taxpayer's payable tax (a tax credit), rather than merely reducing taxable income (a tax deduction) as it does under current regulation?

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Opening Remarks from HTQ Foundation

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Chairman of HTQ Foundation, Ziyad Ulhaq SQ, MA, Ph.D, represented on the occasion by Ustadz Syaifullah, delivered the opening remarks. He emphasised that strengthening the Islamic philanthropy ecosystem cannot rest on fundraising alone; it also depends on sound public literacy and accurate reporting.

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"Zakat, infaq, and waqf are a trust held on behalf of the community. Forums like this matter so that fiscal policy affecting these funds is built on careful study and communicated honestly to the public," said Ustadz Syaifullah on behalf of the Chairman.

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HTQ Foundation regards philanthropy journalism as a bridge between the institutions managing community funds and the public they serve. Through this forum, the Foundation hopes the debate on integrating zakat and taxation reaches readers in full — with its opportunities and its obstacles presented side by side.

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Commission VIII, DPR RI: Zakat and Tax Are Not Competing Burdens

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Singgih Januratmoko, Deputy Chairman of Commission VIII of DPR RI, argued that closer integration between the national zakat and taxation systems could become a primary driver of community economic empowerment. Zakat and tax, he said, should not be positioned as two competing obligations, but as complementary instruments serving the same goal of social justice.

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Optimising zakat collection through such integration, he added, could strengthen poverty alleviation programmes, education quality, health services, and disaster response. He also cautioned that any policy of this kind demands objective and comprehensive study before implementation.

 

BAZNAS: Community Funds Worth IDR 344 Trillion

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Dr. Rizaludin Kurniawan, Commissioner of BAZNAS RI for Mobilisation and Collection, presented research findings indicating that Indonesian Muslims channel roughly IDR 344 trillion a year through religious giving — covering zakat fitrah, zakat mal, infaq and sadaqah, qurban, and waqf.

"Indonesians are extraordinarily generous," he said.

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He drew particular attention to zakat mal collection, currently at around IDR 27 trillion, a figure he believes could rise substantially under a more progressive fiscal framework. The proposal, he noted, originates with muzakki themselves, who have long asked that zakat be treated as a direct offset against payable tax rather than a deduction from taxable income.

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Aware of concerns within the fiscal authorities about a potential drop in state revenue, BAZNAS proposed a limited pilot programme first — beginning in Aceh Province, where zakat administration is already embedded in the regional revenue structure. Comparable schemes, he pointed out, already operate in Malaysia and Saudi Arabia.

 

A Cautionary View from Academia

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A contrasting assessment came from Yusuf Wibisono, economist at Universitas Indonesia and Director of Next Policy. Given the current fiscal climate, he considers the prospects for a tax credit scheme very narrow, pointing to the government's ambitious tax ratio targets and the Ministry of Finance's reluctance to accept any policy that reduces revenue.

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He also raised the question of equal treatment across faiths: if zakat were recognised as a tax credit, mandatory religious contributions from other communities would automatically warrant the same treatment, with a considerably larger fiscal impact. His recommendation was direct — bring the tax authority into the drafting process from the very beginning, or the proposal will keep running into a wall.

 

Closing

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The discussion concluded with the presentation of commemorative plaques from HTQ Foundation to the speakers. The forum forms part of the Foundation's wider effort to strengthen governance and public literacy in Islamic philanthropy, and to encourage policy on community funds that rests on solid data and clear-eyed analysis.