Explore BrainMass

Explore BrainMass

    Zakat and Fiscal System

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Does Zakat have any role to play in the fiscal system of Muslim countries or should it be free from government interference?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:27 am ad1c9bdddf

    Solution Preview

    This is purely my view. Maybe you can also with Islamic scholars.

    Zakat shouldn't have any role in the conventional fiscal system. In the conventional fiscal system, taxes are collected and they are use for government fiscal requirement, such as for operational expenditures as well as development expenditures. Whereas, zakat is obligatory for all affordable Muslims as stated in the Qur'an. And zakat collection should be distributed to the specific recipients (asnaf) as stated in the Qur'an. There are eight recipients who can receive zakat, ...

    Solution Summary

    Zakat is similar to tax in the conventional economic system. However, their concepts are different. Through zakat, incomes are distributed directly from the rich to the poor. Whereas, taxes money are mostly distributed indirectly through government spending. The identified zakat recipients will receive the zakat money directly, whereas, in the tax system the benefits are indirectly received by them.