Zakat Collection and Distribution

8/17/2019 Zakat Collection and Distribution

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THE COLLECTION ANDTHE COLLECTION AND

DISTRIBUTION OF ZAKAT INDISTRIBUTION OF ZAKAT INMALAYSIAMALAYSIA


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54,732,942.458,254,654.5 046,478,287.95Johor

159,836,252.799,892,668.1 0149,943,584.6

9Selango

r

147,587,898.484,283,495.4

0

143,304,403.0

8W.P

TotalZakatFitrahZakat Harta

2006 (RM)

State


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Sources ofSources of ZakatZakat FundFundZakatZakat on businesson businessZakatZakat on agricultureon agricultureZakatZakat on Savingson Savings

ZakatZakat on livestockon livestockZakatZakat on miningon mining

ZakatZakat on earningson earningszakatzakat fitrfitr ..


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39,145,262.2930,139,256.6925,040,911.36AMOUNT

1,977,257.741,530,970.81

997,367.17Others

1,684,368.921,140,479.001,588,626.00Building and Appliances

Rental

260,795.79264,811.15253,854.20

Paddy Field and LandRental

499,420.00424,610.00348,750.00Zakat Al-Fitr

32,983,062.0424,967,985.7820,313,628.02

Property Zakat- Savings

Zakat- Salary Zakat

- KWSP Zakat- Share Zakat- Crops Zakat

1,744,606.951,810,399.951,538,685.97Paddy Zakat

200620052004TYPES OF ZAKAT


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Method of CollectionMethod of Collection1. Collection by appointed staff 1. Collection by appointed staff 2. Collection through offices of the2. Collection through offices of thestate religious departmentstate religious department

3. Collection through salary3. Collection through salarydeductiondeduction


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Calculation ofCalculation of ZakatZakata)a) Zakat Zakat For IncomeFor Income

The meaning of salary is someoneThe meaning of salary is someoneincome from his services with theincome from his services with theemployer or somebody or company oremployer or somebody or company or

institution. For example : Annual salary,institution. For example : Annual salary,arrears salary, variety allowancearrears salary, variety allowance(transport, food, meeting) and others(transport, food, meeting) and others

(including bonus and anything which can(including bonus and anything which canbe describe as income).be describe as income).


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Method AMethod A

2.5 % on the amount of income per year.2.5 % on the amount of income per year.

Example :Example :RM 1,500,00 x 12 month = RMRM 1,500,00 x 12 month = RM

18,000.0018,000.00Rate ofRate of Zakat Zakat that should be paid is:that should be paid is:RM 18,000.00 x 2.5 % = RM 450.00RM 18,000.00 x 2.5 % = RM 450.00

per yearper yearRM 450.00 per year divided with 12RM 450.00 per year divided with 12

month = RM 37.50month = RM 37.50


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Method BMethod BThe income per year will be deducted withThe income per year will be deducted withthe life requirement (basic) per year.the life requirement (basic) per year.A was married and his salary is RM 1,500.00A was married and his salary is RM 1,500.00per month x 12 month = RM 18,000.00 perper month x 12 month = RM 18,000.00 peryear.year.Then, the salary is deducted to theThen, the salary is deducted to thehousehold expenses including himself (perhousehold expenses including himself (peryear) RM 8,000.00, his wife (per year) RMyear) RM 8,000.00, his wife (per year) RM3,000.00 and his child (each one) RM3,000.00 and his child (each one) RM8,000.00. The amount is RM 11,800.008,000.00. The amount is RM 11,800.00minus to the per year income per year = RMminus to the per year income per year = RM6,200.00 per year. Therefore the rate of6,200.00 per year. Therefore the rate of Zakat Zakat is:is:RM 6,200.00 x 2.5 % = RM 155.00 per yearRM 6,200.00 x 2.5 % = RM 155.00 per yearRM 155.00 per year will divided with 12RM 155.00 per year will divided with 12month = RM 12.91 per monthmonth = RM 12.91 per month


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Zakat Zakat of KWSPof KWSPTwo views:Two views: --1. to pay when retire1. to pay when retire2. to pay every year when the2. to pay every year when the

conditions are correct even theconditions are correct even themoney still in KWSP. The rate ofmoney still in KWSP. The rate ofZakat Zakat is 2.5 percentis 2.5 percent


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Zakat Zakat of Agricultureof Agriculture

Paddy price = 1 kilogram =RM0.60Paddy price = 1 kilogram =RM0.60

Subsidy price = 1 kilogram= RM0.24Subsidy price = 1 kilogram= RM0.24Price of paddy per KG =RM 0.84Price of paddy per KG =RM 0.84RM 0.84 X 1,300.49 kilogram (5RM 0.84 X 1,300.49 kilogram (5 Ausuk Ausuk equal to 2equal to 2 KuncaKunca 22 NalihNalih 66gantanggantang ) ) = RM 1,102.94= RM 1,102.94

The rate ofThe rate of PaddyZakatPaddyZakat is 1/10is 1/10RM 1,102.94 X 1/10 = RM 110.29RM 1,102.94 X 1/10 = RM 110.29


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Tax IncentiveTax IncentiveThe Income Tax (Reduction fromThe Income Tax (Reduction fromRetired) (Amendment) Act 2000Retired) (Amendment) Act 2000anybody who paysanybody who pays Zakat Zakat will enjoywill enjoyrebate for their income tax.rebate for their income tax.But this amendment only covers anBut this amendment only covers anindividual.individual.

How about a company?How about a company?


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Law Related onLaw Related on ZakatZakat CollectionCollectionThe penalties vary from state toThe penalties vary from state toanotheranotherEgEg .. KedahKedah -- OnlyOnly zakatzakat on agricultureon agricultureis required to pay at the office.is required to pay at the office.

EgEg maximum penalty RM500maximum penalty RM500minimum RM10minimum RM10


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Reason for Weak EnforcementReason for Weak Enforcement1. No database of1. No database of zakatzakat payerpayer2. Unwillingness of2. Unwillingness of zakatzakat officer toofficer tolist down those who fail to paylist down those who fail to pay zakatzakat

3. Shortage of staff 3. Shortage of staff 4. No4. No zakatzakat laws give the authoritylaws give the authoritytoto zakatzakat officer to investigateofficer to investigate


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ZakatZakat Distribution in MalaysiaDistribution in MalaysiaBasis of distribution:Basis of distribution:1. Principle of1. Principle of IstiabIstiab --To distribute to allTo distribute to all asnaf asnaf

2. Principle of had2. Principle of had alkifayahalkifayahSufficient toSufficient to asnaf asnaf

3. Principle of3. Principle of KhususiahKhususiahSpecial to specificSpecial to specific asnaf asnaf


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Cont..Cont..

4. Principle of4. Principle of IstiqlalIstiqlal

ZakatZakat property should be separatedproperty should be separatedfrom other propertyfrom other property5. Principle of5. Principle of IqtisadIqtisad

Smart distributionSmart distribution6. Principle of6. Principle of MusuliyatMusuliyat alal -- amilamil

AmilAmil responsiblesresponsibles upon his collectionupon his collection7. Principle of7. Principle of alal -- riabahriabahGood safekeepingGood safekeeping


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ContCont ……8.8. ZakatZakat collection should not becollection should not beallocated for general expensesallocated for general expenses9.9. ZakatZakat collection should not becollection should not be

utilisedutilised to coverto cover MajlisMajlis expenditureexpenditure10.10. ZakatZakat collection should not becollection should not beused to build mosque, bridge, road,used to build mosque, bridge, road,

school and etc.school and etc.


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Basic Criteria for DistributionBasic Criteria for Distribution1. Accommodation1. Accommodation2. Food2. Food3. Education3. Education

4. Health4. Health5. Clothes5. Clothes

6. Transportation6. Transportation


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Interpretation of the BeneficiariesInterpretation of the BeneficiariesFaqirFaqir -- The Poor of Straitened MeansThe Poor of Straitened Means

)))) . These include all Muslims. These include all Muslimswhose means are, in spite of theirwhose means are, in spite of theirbest efforts or due to some physicalbest efforts or due to some physicaldisability, insufficient to adequatelydisability, insufficient to adequatelyprovide for the basic lawful materialprovide for the basic lawful materialnecessities of life such as food,necessities of life such as food,clothing and shelter.clothing and shelter.income under 50 percent from theirincome under 50 percent from theirneeds for life.needs for life.


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The Poor DestituteThe Poor Destitute )))) . These include all Muslims. These include all Muslims

whose means are, lacking or are sowhose means are, lacking or are sodeficient as to deny them the basicdeficient as to deny them the basiclawful material necessities of life.lawful material necessities of life.income more than 50 percent fromincome more than 50 percent fromtheir needs for life.their needs for life. individuals belowindividuals belownisabnisabThe real poor people can be definingThe real poor people can be definingas people who earn RM529 per monthas people who earn RM529 per month

and above.and above.the group of people who are closely tothe group of people who are closely tobe poor can be defining as peoplebe poor can be defining as peoplewho earn RM1200 per monthwho earn RM1200 per month


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TheThe Zakat Zakat OfficialsOfficials

Zakat Zakat -- officials, who regularly serveofficials, who regularly serveas members of the variousas members of the various Zakat Zakat --staffs, are entitled to receivestaffs, are entitled to receiveremuneration payable out of theremuneration payable out of the

Zakat Zakat fundsfunds


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AmilAmil includes:includes: --•• The collectorsThe collectors )))) , whose duty it, whose duty it

is to collect theis to collect the Zakat Zakat dues anddues anddeposit them in the authorizeddeposit them in the authorized Zakat Zakat --centrescentres ..

•• The distributorsThe distributors )))) , whose duty it, whose duty itis to apportion theis to apportion the Zakat Zakat funds.funds.

•• The custodiansThe custodians )))) , whose duty it, whose duty itis to keep safe and disburse theis to keep safe and disburse the Zakat Zakat funds to the lawful beneficiaries.funds to the lawful beneficiaries.

•• The custodians include : theThe custodians include : the

treasurerstreasurers –– the caretakers of thethe caretakers of theZakat Zakat granaries andgranaries and Zakat Zakat storehouses and the caretakers ofstorehouses and the caretakers ofdomestic animals levied asdomestic animals levied as Zakat Zakat

(shepherds, herdsmen,(shepherds, herdsmen, watererswaterers ).).


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ContCont ……•• The measuresThe measures )))) , to measure or, to measure or

weigh the cereals and other kinds ofweigh the cereals and other kinds ofagricultural produce levied asagricultural produce levied as Zakat Zakat ..

•• The scribes or clerksThe scribes or clerks )))) , to keep, to keepthethe Zakat Zakat files and records.files and records.

•• The accountantsThe accountants )))) , to keep, to keepaccount of theaccount of the Zakat Zakat revenue andrevenue andexpenditure.expenditure.

•• The informersThe informers )))) , to seek out, to seek outthose persons who are deserving ofthose persons who are deserving of

receivingreceiving Zakat Zakat assistance and to informassistance and to informthethe Zakat Zakat -- officials of their condition andofficials of their condition andwhereabouts.whereabouts.


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ContCont ……•• The assemblersThe assemblers )))) , to, to

assemble theassemble the ZakaZaka tt -- payers or thepayers or thebeneficiaries ofbeneficiaries of Zakat Zakat , when, whenrequired.required.

•• The officers in chargeThe officers in charge )) )) ,,to direct and manage the variousto direct and manage the variousZakat Zakat -- centrescentres and responsible toand responsible tothe state and to the public for thethe state and to the public for theproper functioning of theirproper functioning of theirrespectiverespective centrescentres ..


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Those their Hearts are reconciledThose their Hearts are reconciled(to Islam)(to Islam) )) ))..

thethe QuranQuran included the new convertsincluded the new convertsin the category of lawful beneficiariesin the category of lawful beneficiariesofof Zakat Zakat ,,

solicitude of Islamic brotherhood.solicitude of Islamic brotherhood.


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The slaves and CaptivatesThe slaves and Captivates )) Zakat Zakat funds may be used to assist newlyfunds may be used to assist newly

enfranchised slaves, whose formerenfranchised slaves, whose formermasters were either nonmasters were either non -- Muslims orMuslims orMuslimsMuslimsThe term ofThe term of RiqabRiqab has further beenhas further beeninterpreted as applying to those Muslimsinterpreted as applying to those Muslimswho have fallen prisoner into the hands ofwho have fallen prisoner into the hands ofthe enemy. Hence, it is generally agreedthe enemy. Hence, it is generally agreed

that, whenever such action is possible,that, whenever such action is possible,Zakat Zakat funds may be to ransom Muslimfunds may be to ransom Muslimprisoners of war.prisoners of war.


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The DebtorsThe Debtors ))All debtors who find themselves unable toAll debtors who find themselves unable to

repay their debts without suffering unduerepay their debts without suffering unduedistress or destitution, or who aredistress or destitution, or who areabsolutely unable to do so being devoid ofabsolutely unable to do so being devoid of

all means of subsistence, may lawfullyall means of subsistence, may lawfullyseek relief from their burden through theseek relief from their burden through theagency ofagency of ZakaZaka tt

the debtor is in genuine difficulty or trulythe debtor is in genuine difficulty or trulyneedyneedy


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For the cause of AllahFor the cause of Allah )) lawful warfare for the defense oflawful warfare for the defense ofIslam and of the Muslim peoples andIslam and of the Muslim peoples andterritoriesterritoriescollective efforts which are directedcollective efforts which are directedtoward reducing hardships arisingtoward reducing hardships arisingout of emergencies of any natureout of emergencies of any nature ––

natural calamities, famine, war ornatural calamities, famine, war orothersothers


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The wayfarerThe wayfarer )) Category of people who, for some validCategory of people who, for some valid

reason are unable to return homereason are unable to return hometemporarily or permanently.temporarily or permanently.This would include people facing religiousThis would include people facing religiousor racial persecution, political exiles oror racial persecution, political exiles orrefugees, those seeking safety fromrefugees, those seeking safety fromoppression and those pursuing knowledgeoppression and those pursuing knowledgeand education or involved in satisfyingand education or involved in satisfying

meritorious social wants away from home.meritorious social wants away from home.For such people,For such people, Zakat Zakat serves as a socialserves as a social

insurance fund, the medium of temporaryinsurance fund, the medium of temporaryhelp until they can stand on their own feethelp until they can stand on their own feet


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Problems withProblems with ZakatZakat SystemSystem1. Lack of commitment and1. Lack of commitment and

management expertisemanagement expertiseNot academically or professionallyNot academically or professionallyqualifiedqualified2.Lack of database2.Lack of databaseNo comprehensive database onNo comprehensive database on zakatzakatpayer.payer.3. Legal aspects3. Legal aspectsWeak law onWeak law on zakatzakat


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ContCont ……4.4. ZakatZakat payment through unofficialpayment through unofficialchannel and unpaidchannel and unpaid zakatzakatWeak enforcementWeak enforcement

5.5.


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To what extent the distribution ofTo what extent the distribution of zakatzakat ininMalaysia meets its objectivesMalaysia meets its objectives

ZakatZakat is not really transferred fromis not really transferred fromthe wealthy to the poor.the wealthy to the poor.ZakatZakat is collected mainly to farmersis collected mainly to farmersand government servant. Less thanand government servant. Less than10%10% zakatzakat on business.on business.


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Proposed ReformsProposed Reforms1. Education system1. Education system

2. Role of2. Role of ulamaulama3. To improve3. To improve zakatzakat laws andlaws andenforcementenforcement4. To improve4. To improve zakatzakat administrationadministration5. Establishment of consultancy5. Establishment of consultancy

services networkservices network6. To improve the corporate6. To improve the corporategovernance ofgovernance of zakatzakat administrationadministration

Zakat Collection and Distribution

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