A Survey of Zakah, Issues, Theories and Administration
From HodHood
Contents
Top 20 FREQUENT WORDS
zakah 779 islamic 135 administration 82 economic 66 nisab 66 income 63 kahf 61 items 56 wealth 55 institution 53 countries 50 growth 45 assets 43 issues 42 economics 41 social 41 rates 40 development 37 collection 36 expected 36
DOCUMENT KEY POINTS
- functions the functions of the institute are ito organize and coordinate basic and applied research with a view to developing models and methods for the application of shari ah in the fields of economics finance and banking iito provide for the training and development of professional personnel in islamic economics to meet the needs of research and shari ahobserving agencies iiito train personnel engaged in development activities in the bank s member countries ivto establish an information center to collect systematize and disseminate information in fields related to its activities and vto undertake any other activities which may advance its purpose
- islamic research and training institute establishment the islamic research and training institute was established by the board of executive directors of the islamic development bank idb in h
- C islamic development bank islamic research and training institute king fahd national library cataloging in publication data a survey of the institution of zakah issues theories and administration sadeq abu al hasan jeddah p x cm discussion paper no
- isbn the views expressed in this book are not necessarily those of the islamic research and training institute or of the islamic development bank
- the primary objective of the institute is to carry out research in the area of islamic economics banking and finance to develop the capabilities of professional personnel in islamic economics to meet the needs of research and shari ah observing agencies to train personnel engaged in development activities in the bank s member countries and to develop databases in fields related to its activities to help foster the development of the idb member countries
- the main purpose of this work was to survey contemporary literature in terms of the issues resolved or unresolved theoretical or practical in the institution of zakah rather than describing different models of zakah administration as applied in different countries
- although the survey could not be made all inclusive due to resource constraint it is comprehensive enough to cover discussion on all the major economic fiqhi and practical issues related to the administration of zakah in the contemporary phenomenon
- its importance is revealed in its being one of the five pillars on which the islamic code of life is founded and in the fact that the injunction of salah is frequently followed by that of zakah in the qur an
- according to awan if the institution of zakah is properly implemented it will be able to break the vicious circle of poverty since its introduction with the abolition of interest will encourage the rich to invest their wealth which will increase employment and output with a multiplier effect awan
- based on this yusuf al qardawi supports shafi e opinion for the able and qualified eligible persons and the maliki view in case of unable persons like the children disabled and old persons ei din p
- in addition zakah will increase the standard of living of the poor which will improve their health and skill and this will increase the productivity of the work force sadeq p
- an increase in consumption of zakah receivers does not imply higher consumption from given income but rather higher consumption from higher redistributed income and therefore it may not necessarily lead to net negative savings of the group
- according to him the conditions of justice consistency and the realization of the objectives of zakah would require a fresh reconsideration of such issues as the coverage nisab and the rates of zakah and also the conditions of growth and tamlik for the obligation of zakah
- if new items are to be made zakatable a corollary issue arises concerning the zakah rates of new ite miss the changes in relative prices of commodities in general and in those of the items used as bases for nisab in the prophetic traditions in particular lead to changes in the relative weights of traditionally known nisabs
- kahf s estimates show that if zakah is collected by following the traditional fiqhi views its proceeds will not be more than to of gdp which is not enough to provide subsistence living to the poor not to speak of enriching them
- these are the major issues in the agenda for reconsideration of fiqhi matters of zakah namely the coverage rates and nisab of zakah the conditions of growth and tamlik and the issues of zakah disbursement
- al qardawi justifies this by saying that the territoriality of zakah has been devised to combat and defeat poverty to train each province to become self sufficient and to enable it to solve its domestic problem
- again the practice varies as to the types of zakah al mal to be covered by zakah for example in the sudan and yemen all kinds of zakatable wealth are included as listed in the books of fiqh saudi arabia covers agricultural produce livestock and tradeable items and pakistan specifies some kinds of financial and monetary assets plus agricultural produce kahf p
- in coverage zakah administration in saudi arabia pakistan libya and the sudan covers only zakah al mal while that in yemen covers both of zakah al mal and zakah al fitr kahf p
- in case of the sudan as indicated earlier zakah assessment of all modern sources of income depends on the declaration of the zakah payers in their zakah returns
- kahf proposed to give a chance to zakah payers to make an appeal and also to have periodical review of the criteria of arbitrary assessment to reduce the chance of injustice to either party p
- administration cost one of the beneficiary of zakah is the zakah administration to the extent of its actual cost including the wages and salaries of the people involved in zakah activities
- as an example postering campaign in about famine in africa could raise more than six million us dollars in zakah sumait p
- one must however agree that it is being administered after centuries of discontinuity and it is expected to increase efficiency through experience if the necessary political will is there
- for example only of the estimated amount of zakah could be collected in malaysia in othman p
- zakah is an important institution in the economic system of islam which is one of the five pillars on which the islamic code of life is founded and it has been ordained and implemented in different degrees through the history of prophethood
- all these are expected to contribute to higher employment and output leading to higher economic growth
- there has been centuries of discontinuity in the application of the institution of zakah resulting in a corresponding discontinuity in research and ijtihad on the newly emerging issues in the complicated economic phenomenon of the contemporary world when the forms of wealth and their relative weights as well as prices have changed
- third the institution of zakah will have to be introduced efficiently and effectively with a right kind of political will and by resolving all the fiqhi issues for justice consistency and for materializing the objectives of zakah at a reasonable speed
- it will be unfair to the institution to assign all these functions to it in a society where all distortions prevail
- a proposal in order to resolve the fiqhi issues on zakah a committee may be formed consisting of the top shari ah experts of the ummah and the muslim economists preferably those working in this area
- everybody should join the queue even if it is late and make efforts to move as fast as possible
- the paper was written by moulana muhammad rafi osmani in response to the inquiry by the central zakah management of pakistan on some fiqhi matters related to zakah which was modified and endorsed by the majlis tahqiq masail hadirah
- as a response to shaik fahri unsal said in the seminar that it did not make any sense when a farmer with a relatively low income had to pay zakah on his output but zakah is not levied on a very high salary income shaik p
- the basic condition for membership is that the prospective member country should be a member of the organization of the islamic conference pay its contribution to the capital of the bank and be willing to accept such terms and conditions as may be decided upon by the idb board of governors
- it is also charged with the responsibility of assisting in the promotion of foreign trade especially in capital goods among member countries providing technical assistance to member countries and extending training facilities for personnel engaged in development activities in member countries to conform to the shari ah
- box jeddah kingdom of saudi arabia cable address bankislami jeddah telephone facsimile e mail address db lsdb
- islamic development bank islamic research and training institute postal address p
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DOCUMENT WORD ANALYSIS
Main Category
- AlHuda Material\riba
KeyWords
zakah islam econometric administrating institut nisab kahf issuance incom item rate wealth collected tax distribute countries social zakat disburse growth
RELATED DOCUMENTS
- A Survey of Zakah, Issues, Theories and Administration
- The Institution Of Zakah
DOCUMENT REFERENCES
Number of Pages
70
Published Date
2005-07-13 15:58:33
