LAND AND BUILDING TAXATION IN ACEH: A Shariah-Adat Lens for Fiscal Equity and Climate Resilience in Muslim ASEAN Cities

Abstract

Purpose:  This study examined land and building taxation in Aceh through a Shariah-Adat lens to advance fiscal equity and climate resilience in Muslim-majority ASEAN cities. The study critiqued neoliberal fiscal paradigms by reframing taxation as a tool for Al Ghazali Maslaha wal Murshalah (the public benefit) and the Islamic principle of‘adl (justice), and investigated how Aceh’s hybrid governance model, rooted in Islamic principles and Adat traditions, addressed urbanization pressures and environmental vulnerabilities.
Method:  Using quantitative analysis of panel data (2017–2022) from 23 Acehnese districts, the study employs multiple linear regression, R², t-tests, and F-tests to assess the impact of land taxes (PBB) and acquisition fees (BPHTB) on local revenue. 
Findings: The study revealed a positive but uneven influence: PBB significantly contributes to regional income (β = 0.1418, p < 0.05), while BPHTB shows marginal significance (β = 0.0313, p > 0.05). Together, both variables explain 24.2% of fiscal outcomes , underscoring systemic inefficiencies. The findings highlight gaps in revenue mobilization and equity, particularly in coastal communities facing climate risks
Limitations and Theoretical Implications: The study  emphasized the need to integrate Shariah-Adat ethics into fiscal frameworks, challenging neoliberal assumptions of extractive taxation.
Practical Implications: The study also included reinvesting tax proceeds into climate-resilient infrastructure, aligning BPHTB with Adat -guided land rights, and fostering regional policy networks (e.g., ASEAN’s Jakarta Mandate). Having a quantitative fiscal analysis with qualitative insights from ulama and Adat leaders, this study offers a decolonial model for equitable, Shariah-compliant taxation in Muslim Asia.