Al-Habibiyah urges FG to remove tax on charitable properties

The Al-Habibiyah Islamic Society has called on the federal government to exempt charitable properties from taxation. The National Chief Imam and Executive Director, Imam Fuad Adeyemi, made the appeal during the 23rd Annual Ramadan National Unity Lecture in Abuja. He noted that in several developed countries, properties dedicated to charitable causes are not subjected to […]

The Al-Habibiyah Islamic Society has called on the federal government to exempt charitable properties from taxation.

The National Chief Imam and Executive Director, Imam Fuad Adeyemi, made the appeal during the 23rd Annual Ramadan National Unity Lecture in Abuja.

He noted that in several developed countries, properties dedicated to charitable causes are not subjected to tax.

“When a property is being used strictly for charity, should it be taxed? In some developed countries, such taxes are removed. We urge the government to ensure that charitable properties are either exempted or given significant tax relief.

“If taxes are imposed on charitable activities, the objective may be defeated. There should be a meeting point where such taxes are reduced or completely removed,” Adeyemi said.

Also speaking, Prof. Usman Shuaib, Guest Lecturer and Director of the International Institute of Islamic Banking and Finance at Bayero University, Kano, advocated making Zakat a tax-deductible donation.

He explained that corporate donations are often treated as tax-deductible expenses, and Zakat contributions should receive similar recognition.

According to him, Section 30(2) of the new consolidated tax act provides for eligible deductions and allowances that are removed before taxable income is determined.

These include housing rent relief, pension contributions, payments to the National Health Insurance Scheme, and the National Housing Fund.

However, he noted that Zakat is not among the listed allowable deductions, despite being a religious obligation for Muslims. He urged authorities to recognise Zakat as a deductible expense before assessing taxable income.