Authors:Ahmad Fahme Mohd Ali, Mohd Faisol Ibrahim, Muhammad Ridhwan Ab Aziz Pages: 1 - 24 Abstract: This study attempts to analyze missing items in current zakat distribution among the poor and needy zakat recipients in Kelantan. The study is motivated by few shortcomings of current zakat distribution as well as an increasing amount of expenditure annually on the two categories of zakat recipients, and yet the number of poor (fuqara) and needy (masakin) households is increasing. The current amount of zakat monthly distribution seems to raise some issues due to its weaknesses. This paper examines several missing elements in the current zakat distribution in Kelantan, Malaysia. The research was conducted through in-depth interviews with selected zakat recipients from a variety of socio-economic-cultural backgrounds in Kelantan, Malaysia. This study recommends that these items should be included in future zakat distribution in order to improve and strengthen the Muslims economy condition, and then, it would facilitate the poverty alleviation programs by the zakat department. Keywords: Zakat Poverty Line, Had Kifayah, Poor and Needy, Kelantan, Malaysia PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Suhail Ahmad Pages: 25 - 33 Abstract: Zakat plays a vital role in the socio-economic development of a country. With zakat, the poor community is facilitated their food, safety, nutrition, sanitation, education, and other necessities. This study focuses on the role and current practice of zakat in the Malakand district of Khyber Pakhtunkhwa, Pakistan. This paper also develops and proposes a model for efficient management of zakat there. In doing so, this study interviews a sample of thirty respondents. A list of ten questions is constructed during the interviews using the local language, which is Urdu. The current practice of zakat in the region is explored, and further recommendation is captured for better practice of zakat management. For this, the study proposes an ideal model of the zakat management system, which can also be adopted by other countries. The discussion of this study is limited to the district of Khyber Pakhtunkhwa of Pakistan. Keywords: Zakat, poverty alleviation, socio-economic development, ideal management, Pakistan PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Kamilah Kinanti Pages: 35 - 43 Abstract: As an effort to optimize the transparent and measurable zakat management, BAZNAS Center of Strategic Studies has been developing several instruments, including the Had Kifayah measure. The measurement is the standard limit of basic needs of a Muslim, which is helpful to consider the requirements of zakat recipients. By employing Had Kifayah, this paper performs a case study from Nusa Tenggara Timur (NTT) Province in 2018 and finds that NTT had the highest cost of living of IDR3,363,105.00 per family (monthly). This paper covers the preliminary study verifying the categorization pyramid as in Had Kifayah standard to investigate the changes of a mustahik income and expenditure before and after the productive zakat program of BAZNAS. The results show that the program conducted by BAZNAS-NTT from 2016 to 2017 is found to be in the fourth priority on the Had Kifayah pyramid. Keyword: Had Kifayah, priority pyramid of Had Kifayah, Mustahik of Productive Zakat Program, Nusa Tenggara Timur (NTT) PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Khairunnajah Khairunnajah, Irfan Syauqi Beik, Bagus Sartono Pages: 45 - 54 Abstract: Zakat has enormous potential for the development of a nation. Recently, The Ministry of Village, Development of Disadvantaged Areas and Transmigration targets to eradicate 5000 poor villages. However, the current number of underdeveloped villages is still high. For this, the empowerment program of BAZNAS can integrate with the local government to participate in the development of backward regions. Zakat Community Development is one of BAZNAS subsidiary aiming at community development. This study engages the index of zakat village (IDZ) to investigate the feasibility of Cemplang village in getting assisted by BAZNAS empowerment programs. This study finds that the Village is considered to get supported by zakat funds. Keywords: zakat, community development, empowerment, IDZ PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Muhammad Anif Afandi Pages: 55 - 66 Abstract: Islamic banks carry out their operational activities based on Islamic principles. Thus, they are not only required to pay taxes but also zakat of 2.5 percent with several conditions. Theoretically, zakat has an impact on Islamic banks larger expenditures compared to conventional banks which are not obliged to. This research examines and analyzes the extent to which profitability variables which are ROA, ROE, and BOPO, and bank size which is represented by total assets, can affect corporate zakat expenditure by Islamic Commercial Banks (BUS) in Indonesia. To do so, the Panel Vector Error Correction Model (PVECM) is used to analyze the subject matters which the period covers from 2012 to 2017. This work finds that in the short-run, all the independent variables were insignificant. However, in the long-run only ROE and BOPO which were significant. The results of the Impulse Response Function (IRF) analysis showed that the dependent variable responds to the shock of its independent variables with fluctuating and even negative trend. In addition, the results of Variance Decomposition (VDC) analysis showed that the contribution of profitability variables and bank size tended to decrease toward the formation of corporate zakat expenditure by BUS until the end of the research period. Keywords: Corporate Zakat Expenditure, Islamic Banks, Profitability, Bank Size, PVECM PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Abderrazak Belabes Pages: 67 - 75 Abstract: The aim of this study is to highlight the need to think zakāt as a pluridimensional concept. It cannot be studied in depth without a thought that contextualizes, connects and globalizes everything that its existence implies for actors who do not perceive it in the same way. This approach allows to face the error, illusion, uncertainty and risk that may arise from the feeling of sufficiency, which purports to exhaust the real from a specific point of view, especially that which comes from the financialism that perceives zakāt as a constituent of social finance. Hence the need for an eminently collective effort of reflection to provide everyone to refine his peculiar thought and to apprehend the phenomenon as a whole which shows the zakat, in its deepest essence beyond the legal aspect, as a means to create or maintain the social link. Key-words: Zakat, Methodology, Pluridimensional concept, Financialism JEL Classification: B41, B55, G23, Z13 PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
Authors:Any Setianingrum, Aam Slamet Rusydiana, Penny Rahmah Fadhilah Pages: 77 - 87 Abstract: This study aims to select the most appropriate treatment of zakat and tax to maximize Indonesia taxation of the given three alternatives. The first alternative is zakat and taxes are not correlated. Second, zakat is used as deductions of taxable income. Third, zakat is used as a tax credit. The basic considerations for determining the rank of these three models are from the aspects of benefits, the costs, and the risks. The analytical tool used is ANP (Analytic Network Process). The research respondents are some experts and stakeholder of zakat and tax in Indonesia. Based on the result of this research, the first rank is zakat as a tax credit with a weight of 0,469. The second alternative is zakat as the deduction of Taxable Income with a weight of 0,385. The third or last alternative is zakat and tax has no direct relationship with the weight of 0,146. Based on this research, to increase tax revenue in Indonesia, zakat as a tax credit is advisable. Keywords: Zakat, tax, credit, ANP, Indonesia PubDate: 2019-05-31 Issue No:Vol. 4, No. 1 (2019)
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