Recent interpretations of the economic aspects of zakah

Author

Zaim, Sabah al-Din

Source

Management of Zakah in Modern Muslim Society

Publisher

Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)

Publication Date

2000-12-31

Country of Publication

Saudi Arabia

No. of Pages

20

Main Subjects

Economy and Commerce

English Abstract

In this paper the author has made a survey of literafure pertaining to assessment, collection and disbursement of Zakah together with the issues that emerged from them.

The paper discusses the basis of Zakah assessment including nisab, productivity and ownership of Zakatable assets.

t also deals with conditions of eligibility to pay Zakah, and the different rates of Zakah on various kinds of wealth varying from arficles of trade to windfall profits.

In this context, some controversial points such as the changing values of gold and silver, Zakah on industrial assets, income from stocks and bonds etc.

are raised from the fiscal point of view, Zakah is contrasted with secular taxes using a number of criteria.

The macroeconomic impact of Zakah is also examined.

The paper refutes the argument of some scholars who favor that Zakah rates should be made flexible and responsive to the state of economic condition.

t is argued, however, that the proper management to Zakah proceeds can conceivably serve as an economic tool for stability as well as a measure to counter cyclical changes in economic growth.

It is maintained that Zakah proceeds have a mulfiplier effect on the national economy if they are productively invested.

Zakah is seen to have a positive role not only in the fair reallocation of scarce economic resources, but also in the redistribution of income in favor of the poor and the disadvantaged

Language

English

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Data Type

Book chapters

Notes

Includes bibliographical references : p. 119-120

Record ID

BIM-777811