Contrary to poplar perception, Zakat, the annual levy payable on the wealth of Muslims, is not merely a charitable donation to the poor and needy. But as Dr Zaki Badawi, Shariah Consultant to Islamic Banker, stresses, the institution of Zakat should be used to finance development projects to alleviate poverty - an aim which demands greater transparency in the collection and disbursement of Zakat.
ZAKAT is one of the five pillars of Islam. It has two essential aspects one spiritual and the other material. The spiritual aspect is referred to in the holy Quran in the verse "Take (O Prophet) from the wealth Sadakat (Zakat) to cleanse and to elevate them (the muslims)." This spiritual element is emphasised in many other verses where it is represented as a loan given to Allah to be repaid many times over.
To pay Zakat is a cleansing process for the wealth and its owner. Allah not only promises reward in the hereafter but also to bless an enterprise so that it becomes more profitable; The terms itself indicates both purity and growth. The material element is manifest in its role as an important factor in social justice and peace. Because the poor and needy are guaranteed a share in the wealth of the wealthy, It helps to harmonise the relationship between the haves and the have not thus reducing the chances of social disorder and the loss to the community of any proper participation by the poorer section.
If a social system is measured by its care of the weak and the needy, then Islam passes the test with honours.
Now, the question is how should Zakat be paid? To whom? In what way, and is it the only legitimate tax? The literature has several contradictory views influenced by the direct experiences of the scholars. Some, bearing in mind the conduct of their rulers, bearing in mind the conduct of their rulers, suggest that the individual should be entrusted with its distribution, unless the ruler demands it, In which case he should only be paid Zakat of the visible assets. Zakat of the invisible assets should be entrusted to the individual.
As to whom it is to be paid, the answer is ln Surah 9, Verse 60 of the Holy Quran, which specifies the recipients as "the poor, the needy, the Zakat collector, the slaves to buy their freedom, those whose hearts you seek to win, those who have crippling debts or loss of property, the warriors and the needy traveller. "The category of warrior is a restricted translation of the term "Fi sablliallh". Some understand the term to include any outlet that serves the community and the Faith. As for the way it is paid, scholars regarded it as funding the consumer needs of the recipient, such as food, clothing, housing and even means of transport.
Since it is levied annually, the treasurer is supposed to dispose of it shortly after collection. The use of Zakat funds for long term projects was seldom discussed by the scholars due to the nature of economic activities of their time. Some of them allowed utilisation of Zakat for building schools and mosques while others considered such projects to be outside Quranic categories Finally, is Zakat the only legitimate tax? Some scholars decreed that taxes additional to Zakat cannot bo levied on the Muslims under normal circumstances, in abnormal situations such as war, drought and shortage of supplies the rich might be asked to pay taxes to meet the crisis. This vision is clearly based on the prevailing system of non-interventionist administration.
Governments in the past undertook no systematic part in general education, agricultural and industrial planning or health. Those and other responsibilities forced modern governments to create a large bureaucracy to manage the state and this in turn led to the imposition of taxes to fund a standing army, police force, medical services, social welfare, justice, schools and universities subsidised industries etc.
No scholar has disputed the right of contemporary governments to collect enough taxes to meet those commitments. The question to be asked is whether these taxes absolve the Muslim from paying Zakat. there are those who suggest that it would not be fair to subject the Muslims to further payments if they extend the tax to Zakat. In the last century, some groups held this view and launched a revolution against rulers who imposed taxes alongside Zakat.
We have now to examine these questions in the light of the Shariah and take into any proper participation by the poorer section. If a social system is measured by its care of the weak and the needy, then Islam passes the test with honours. Now the question is how should Zakat be paid? To whom? In what way, and is it the only legitimate tax? The literature has several contradictory views influenced by the direct experiences of the scholars.
Some, bearing in mind the conduct of their rulers, suggest that the individual should be entrusted with its distribution, unless the ruler demands it, in which case he should only be paid Zakat of the visible assets. Zakat of the invisible assets should be entrusted to the individual.
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In the first place we must differentiate between Zakat and tax. Zakat has a spiritual nature and has its roots in the Revelation, whereas secular taxes are imposed by the civil or secular authority. |
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Secondly, the function of Zakat is clearly defined as catering for eight categories, whereas taxes have much wider applications. |
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Thirdly, tax collection depends on the power and skill of the authorities, which induces many people to seek to avoid, if not evade, payment. Zakat being a religious duty has the consciousness of the believer as an inducement towards payment. There is an invisible collector of Zakat living in the heart of every Muslim. You can cheat the government, but how can you cheat AIlah? For this reason, I believe that Zakat must remain an obligation on the tax-paying Muslim.
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This example should inspire the Zakat authorities into projects that effect the fundamental solution of poverty. It should fund training schemes to make the skills of the poor more marketable. It should also finance projects that give jobs and supply needed goods and services such as textile factories, machine tool manufacture and cheap housing. The list is endless.
Modern economics shuns aid which meets immediate consumption. There are, of course, cases where the need for food and other consumer goods is too urgent. But Zakat funds should plan to achieve the aim of the Shariah-that is to find a longterm solution to poverty and dependence. In this respect, I would like to differentiate between Zakat Al Fitr (poll tax) and Zakat Al-Maal (wealth tax). The former should be exclusively for consumption as the Prophet Muhammad advised us to bring joy and plenty to every household on the occasion of Eid El- Fitr. But the latter should be an allocation of long-term projects.
The imposition of an organised Zakat collection system should be the objective of every lslamic state, both for the benefit of social peace and religious fulfilment. This might create a problem where Muslims live side by side with non-Muslims. It would not be just to charge the Muslim with both civil and religious taxes while the non-Muslim neighbour pays only one tax. In the past, non-Muslims used to pay Jiriah which was the counterpart of Zakat. This, however, Is no longer the practice. The solution, therefore, should be to deduct Zakat from the secular tax. As Zakat is ear-marked for social benefits, it is of service to all citizens.
There should, however, be supervision by a Zakat authority to oversee the appropriate disbursement of funds, and to ensure that money is spent transparently in the way the Shariah specifies.
Dr. Zaki Badawi
