Zakat

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ZAKAT ADMINISTRATION IN MALAYSIA FOR PROPERTY ALLEVIATION

TABLE OF CONTENTS

Abstract .......................................................................................................................... i CHAPTER 1: INTRODUCTION.................................................................................. 1 Philosophy of Zakat .......................................................................................... 1 Zakat Management........................................................................................... 5 Zakat Collection.............................................................................................. 7 Zakat Disbursement....................................................................................... 7 CHAPTER 2: ZAKAT AS A TOOL FOR POVERTY ALLEVIATION............................ 11 The Poverty Definition.......................................................................................... 1 Poverty Profile in Malaysia.......................................................................................... 1 The Potential of zakat in Poverty Alleviation............................................................ 1 Conclusion and Suggestion........................................................................................................ 49 BIBLIOGRAPHY...................................................................................................... 164

Abstract: In this paper, we discuss philosophical concept on zakat and also discuss on zakat as a tool for poverty alleviation in the first part, the paper discuss on meaning of zakat as well as objective of zakat obligations towards Muslim. There is also have discussion on zakat management (i.e zakat collection and zakat disbursement).In the second part, we discuss on meaning of poverty and poverty picture in Malaysia. Finally, zakat contribution towards alleviate the poverty Keywords: zakat,, zakat management, poverty alleviation

CHAPTER ONE
INTRODUCTION

1. PHILOSOPHY OF ZAKAT
Zakāt is an obligatory religious duty on Muslims to achieve divinely prescribed socioeconomic objectives. It is a self-help measure adopted with full religious backing to support those poor and needy who are unable to help themselves so as to alleviate misery and poverty from Muslim society (Chapra, 1992). Zakāt is to meet the needs of several stakeholders and is a divine duty for which those charged with its management are accountable. This submission is based on the clear distribution criteria in (al-Quran, al-Taubah: 60) where Allah (SWT) says:

إنما الصدقات للفقراء والمساكين والعاملين عليها والمؤلفة قلوبهم وفي الرقاب والغارمين وفي سبيل الله فريضة من الله والله عليم حكيم. التوبة:60.

Verily As-Sadaqat (Az zakāt) are only for the poor, the needy, those employed to collect, to attract those whose hearts are being reconciled (towards Islam), in freeing the captives, helping those in debt, in the way of Allah (i.e waging Jihad), and the traveler. It is a duty imposed by Allah and Allah all knows, most wise.

Zakat is difficult to translate into English. The literal meaning of the word means “blessing, purification, growth, increase and cleansing “(Ibrahim, 2009). The technical definition of zakat is a specified amount on specified wealth and income which is collected from Muslims who are liable and to be distributed to the eight categories (asnaf) of people mentioned in the Quran.(Ibrahim, 2009). According to (Abu Bakar 2007) Zakat can be defined as “the amount of money o kind taken from specific types of wealth when they reach a specific amount at a specific time which must be spent on specific categories in specific ways”. By this means, zakat can be paid both in the form of cash or kind. An example of cash zakat is zakat on income earned. The income that received from cash form like salary, gratuity, etc. will be paid on zakat by cash. Meanwhile, example for zakat in kind is zakat paid on crops. Paddy farmers...
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