Abstract

Zakat is a monetary form of religious worship that establishes a bridge between a rich and a poor, helps those who are in need and contributes to peace and tranquillity within a society. When zakat is collected properly under a government control and transmitted to those who deserve, it helped to decrease the gap between the poor and the rich, supported activities of social solidarity and revived the economy as well. Malaysia after its independence in 1957 has developed an interest in Islamic practices by drawing attention to a distinctive practice with the public zakat system. Even though a national- central system of zakat could not be established due to the federal structure of the country, the collection and distribution of zakat has been centralized on a state level. Parts of the practice are being criticized, reviewed and new regulations are introduced. Unlike Malaysia, the zakat practice in Turkey is out of state control, thus it hinders zakat from achieving its real purpose. There is a need to make use of the well-functioning zakat systems around the world and establish a public zakat system in our country so that we can make the most of the benefits that zakat has for individuals and societies. This article aims to be a step in that direction. SUMMARY Zakat is one of the main forms of worship and is at the same time one of the main sources for the state budget in Islam. It aims at making sure that the rich –those with higher wealth and income– protects the poor and the powerless and through this it contributes to the peace in the society. In the Islamic creed wealth in reality belongs to Allah; therefore, those who live an affluent life should not attribute their wealth to themselves alone and help those who, for whatever reason, are unable to meet their needs. Because there is a social dimension to this form of worship, it is the duty of the head of state to collect the zakat and distribute it to the right people. Historically this duty has taken different forms and today, many Muslim countries sustain this collection and redistribution under state supervision. Malaysia is a country where zakat is collected and distributed officially at the state level. In each state, there is an Islamic council responsible for taking care of activities related to Islam and is semi-independent from the government that organizes the zakat process. Some of these do the collection and distribution together, some do it separately. In some states, the process has been totally privatized. Constitutionally, each state is dependent on its own sultan in religious affairs, thus each has its own mufti and partially different zakat practices and eac collect and distributes its zakat within that state. Because religious affairs have been codified as the privilege of the sultans of each state in the constitution during Malaysia’s foundation, there is no attempt at centralizing religious affairs and a centralization of zakat practices; the establishment of an institution to achieve this is not possible. Moreover, the secular character of the federation does not seem yet compatible with making zakat obligatory. However, due to the dominant Shafi‘i tradition and the convention in the country, people see it as imperative to hand over the charity and tithe to state institutions. Furthermore, there are local fatwas – which are considered as legal regulations in Malaysia – that require people with an income over a certain amount to pay zakat. Those who have the most are expected to give it voluntarily. In the 19th century, when wealth sources such as palm oil, cacao, rubber, tin were discovered, Malaysian officials were not able to extend the tithe to these; however, in the last twenty-five years, based on fatwas that income should be taxable under zakat has led to a boom in zakat. In all states, the largest portion of zakat is collected through income, usually automatically deducted from payroll. An influential factor in this outcome is that individually paid zakat can be deducted from income tax. From 2005 on, there have been other regulations to make it possible for legal personalities to deduct zakat from taxes. To increase zakat payment, especially publications have been produced to inform and encourage people, and modern opportunities to make payment easy have been developed. The most often used method is direct deduction from payroll. The second most common method is payment through zakat machines in different parts of the city by cash, check, Islamic credit card and, debit card. In addition to these, online, internet banking, telephone banking, ATM machines, post offices, kiosk machines, sms-zakat options are all available. The distribution of zakat differs from year to year and state to state. In general, there is an observable effort to pay all groups from zakat, but because there are no slaves in some states no payment is done under this category. There are both direct transfers and indirect transfers, such as through the construction of houses for poor people. There have been cases where poor people who had projects were supported with funds and those later returned in zakat. There is support for students in terms of scholarships through fuqarā’, fī sabīl allāh and ibn al-sabīl classes. For the muallafa al-qulūb class, there is a foundation to encourage local people to convert to Islam and help them for food, shelter, clothes and education. For Muslims who suffer as minorities in other countries help is provided through the riqāb, muallafa al-qulūb, fī sabīl allāh and ibn al-sabīl classes. In the ghārimīn class, especially victims of natural disasters such as flood and earthquake are supported. For those who have a right to receive zakat be able to receive it, the state has to side with the powerless and help zakat fulfill its social and individual functions. The way zakat is spent requires state policy and will. For this reason, zakat should be institutionalized and all activities should be organized by a single institution with state power behind it. Determining the recipients and the zakat-payers, and using the funds efficiently is easier with the coordination of state institutions. Extensive zakat councils that include state institutions should consider the ijtihāds in the area of zakat anew and make decisions to create a just and consistent zakat system. For these decisions to be applicable, the question of what kind of a system could be founded in our country should be on the agenda in these councils. Once an institution – official or autonomous but with state power behind it- is created, solutions can be found as they arise in the way.