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๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia /Culture & Society

DSN-MUI Chairman Urges Companies to Pay Zakat Through BAZNAS

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The Chairman of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI) urged companies, especially Islamic ones, to pay corporate zakat through BAZNAS.
  • BAZNAS is highlighted as a professional, transparent, and accountable state institution for zakat management.
  • Paying zakat through BAZNAS can also provide tax incentives, reducing taxable income for companies.

KH M Cholil Nafis, Chairman of the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), has called on all companies, particularly those operating under Islamic principles, to fulfill their corporate zakat obligations through the National Zakat Agency (BAZNAS).

I invite Muslims, Muslim entrepreneurs, to pay zakat to BAZNAS. Pay zakat for employees, pay zakat for the company, and this can be utilized as best as possible by government incentives, where it can reduce income that is subject to tax.

โ€” KH M Cholil NafisEncouraging companies to pay zakat through BAZNAS and highlighting tax benefits.

Cholil emphasized that BAZNAS is the official state institution responsible for managing zakat with professionalism, transparency, and accountability. He encouraged Muslim business owners to pay zakat for their employees and their companies, noting that this can be effectively utilized through government incentives that reduce taxable income.

He further praised the zakat management system through BAZNAS for its increasing transparency and accountability. Cholil stated that the utilization of all distributed zakat funds can be traced, assuring the public and companies that the funds are used for the benefit of the community and the nation.

We will later ask for the sharia compliance report not only based on the correct contract but also based on diligent and obedient zakat payments. That must be part of sharia compliance.

โ€” KH M Cholil NafisStressing the importance of zakat payment as a measure of sharia compliance for companies.

Cholil also urged all Islamic institutions and companies to consider zakat compliance as a key indicator of sharia compliance. He believes that sharia compliance should not solely be measured by the correctness of contracts but also by a company's commitment to fulfilling its zakat obligations. This synergy between DSN-MUI, BAZNAS, the government, and businesses is expected to strengthen the national Islamic economy ecosystem, expanding the benefits of zakat for society and reinforcing its role in equitable welfare distribution and national development.

Alhamdulillah we received testimonials from several companies. First, their taxes were reduced by zakat. Second, they said that zakat through BAZNAS is considered credible because it truly reaches the mustahik.

โ€” Dr Ir H Sodik MudjahidSharing positive feedback from companies that paid zakat through BAZNAS.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.