Islamic Clerics Demand Tax Exemptions For Charitable Organisations

Prominent Islamic clerics in Nigeria are urging the government to exempt charitable organisations and religious duties like Zakat from the new Consolidated Nigeria Tax Act 2025, warning that current proposals could lead to “double taxation” for Muslim citizens.

Professor Usman Muhammad Shuaib, a Professor of Islamic Law, and Faud Adeyemi, the National Chief Imam and Executive Director of Al-Habibiyyah Islamic Society (AIS), made the appeal at the 23rd Annual National Unity Ramadan Lecture in Abuja.

The lecture, themed “Making The New Tax Work: The Zakat and Waqf Concern,” highlighted concerns that the new tax regime fails to adequately recognise existing Islamic charitable obligations.

Professor Shuaib emphasised that Zakat, an obligatory payment for working Muslims and a pillar of Islam, should be considered an allowable deduction under the new tax law. He argued that taxing Zakat payments would effectively mean individuals are taxed twice on the same earnings – once by religious duty and again by the state.

“The major takeaway from this discussion is that Zakat should be considered as part of allowable deductions in the new Consolidated Nigeria Tax Act 2025. But the simple reason is that Zakat is obligatory on every working Muslim. You have no discretion to decide whether to pay; you must pay. Because this is an issue of religious duty.”

Imam Adeyemi echoed these sentiments, stressing the need for a clear distinction between the new tax law and Islamic charitable tools such as Zakat and Waqf (endowments).

He questioned the imposition of taxes on assets or gains already dedicated to charitable purposes within the Islamic framework, advocating a system that allows both the new tax regime and Islamic charitable practices to coexist effectively.