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Managing Zakat: A Reassessment
13 March 2006
Translation

From a perspective of wealth and property, Zakat, Jizyah, Sadaqah, Taxes, Ufti etc, all represent a form of payment, whether voluntarily, through agreement, custom or laws, directed towards someone, whether it is an individual, institution, organisation, the authorities or the government. This has taken place in the history of mankind, notably in perpetuating the continued influence of an individual. To be more accurate, regardless of whatever civilisation, religion, beliefs or cultural customs, wealth and property are effective instruments determining authority.

However, Zakat has it own definition, which can cause it to become an issue of confusion amongst non-Muslims when it is related to Jizyah, or any form of payment to the government. Zakat was specifically directed towards Muslims only during the lifetime of Allah´s Messenger (s.a.w.), while Jizyah which was imposed upon non-Muslims, was viewed by non-Muslims as a procedure that lowered the dignity of humans to being second class citizens. This of course is not true when it comes to its real definition, meaning and application, which needs to be elaborated upon.

This also includes the definition and meaning of Zakat. Basically Zakat is understood from the aspect of payment that is required on wealth and property. Zakat is an obligatory duty imposed upon those who have, towards the poor and needy, because a part of the wealth owned by the rich belongs to the poor.

Those who understand the original role of Zakat need to study and to research further to see whether Zakat is capable of fulfilling its goals and objectives in accordance with what Allah has revealed. Any deviation can result in dire consequences to the government itself.

Furthermore, Zakat as it has been agreed upon by the majority of Islamic scholars (Ulama´) is a fundamental of Islam, which means that Zakat is a major pillar of Islam – a definition which projects how Islam is raised and strengthened to serve the interest of its followers. This is why all Muslims must implement it, regardless of whether it is undertaken out of faith or as a result of it being institutionalised. However, if Zakat is enacted by the government of a country, then its citizens will be required to make such payment according to its laws. This will lead to all kinds of implications, for example, Zakat will not be looked upon as something undertaken in accordance with the teaching of Islam!

Traditional Zakat which is based on worship and as a fundamental principle of Islam needs to be defended against efforts to pollute it, as this can weaken the teachings of Islam. This is because Muslims accept Islam willingly; and such willingness needs to be made an axis of worship, so that Islam is not neglected. If this is not undertaken, then the Ummah will experience its downfall, and most probably will not be able to emerge from it because it has cast aside the role of Zakat as a pillar of Islam!

ZAKAT AND THE DEVELOPMENT OF THE UMMAH

The relationship between Zakat and the development of the Ummah is closely related. It is similar to the Malay proverb which describes the closeness of flesh to the fingernail. Likewise in worship, Zakat is very closely linked to Prayer, another fundamental principle of Islam, described as another pillar of Islam. The combination of both these pillars of Islam is capable of stabilising our journey in life.

In other words, when one looks at the Ummah today, its unstable state, its leaders, intellectuals and Muslims, one does not need to seek or to look back upon the past, because it is obvious that the lack in leadership, lack of knowledge, oppression by foreign powers, the military might of non-Muslims, the weaknesses of Muslims etc; or the status of Islam, which has been reduced from being the constitution of a country, is no longer a factor that requires attention, compared to a far more greater weakness, notably the supervision of ´Rukun Islam´ (The Five Pillars of Islam) which includes Zakat.

In fact, Zakat is not only capable of assisting in the development of the personality of an individual through the purification of the self, through the payment of Zakat, or in modern terms established human capital, but Zakat is also capable of establishing a model society of Islam. This is because through Zakat the Ummah will be able to initiate the fundamentals of Islam, which will also lead to the performance of Hajj.

What this means is that when a model of Islam has been established, there is no possibility of it being halted anymore, until Islam occupies every aspect of existence, whether it involves Muslims or non-Muslims. Through such, a model of life for mankind is established based on the teachings of Islam. All this begins with aptitude and commitment to manage Zakat according to the teachings of Islam.

It is obvious that the formula to develop the Ummah is not confined to theory or philosophical life, including democracy with its taxation, or in the belief that military might and continued hegemony can bring about peace and stability, because such is distinctly established in Islam, towards Muslims and non-Muslims. What is feared is that some form of effort to direct or to deny existing formulas based on the fundamentals of Islam involving Prayer and Zakat, will invite objections, including those from Muslims themselves.

PROCEEDURE FOR ZAKAT MANAGEMENT BEFORE AND NOW

If examined in detail, the procedure for Zakat management is more inclined towards the following:

1. To guarantee the interest of those in power.

This took place after the Islamic Empire spread after the demise of Allah´s Messenger (s.a.w.). Those in power made Zakat a part of their governing agenda, so as to strengthen the Islamic Treasury (Baitul-Mal). While those who refused to make payment of Zakat were prosecuted, an indication that the process of decline within the Ummah had already began. (Note: This action, known in history as the ´Riddah War´ was undertaken by the First Caliph, Abu Bakr (r.a.) against those who refused to make payment of Zakat, needs to be studied further, to determine whether the action was undertaken because of the refusal to make payment of Zakat or was it undertaken according to definition where Zakat is similar to “Ufti”(taxation); or as a result of giving up Islam (murtad) and rejecting authority.]

Whatever the reasons are, this gradual decline has continued because the mechanism for Zakat has not been completely defined in “Rukun Zakat”. The process of distribution can be also found to be unclear between fulfilling the objectives of the Ummah, or to maintain the authority of those in power, through the process of ´favouritism´ when distributing Zakat.

Finally, the nobility of Islam which we are proud off continues to be destroyed through new encroachments, notably Western colonization. This destruction continues to be experienced even to this day.

2. Restructuring in accordance with colonists

This restructuring took place throughout those countries or areas under their control, and Malaysia is one of those countries who has not been able to avoid this phenomenon. The method of collecting Zakat by the ´amil´ (appointee to collect Zakat) and its distribution to those entitled to it during the glorious era of Islam was continued by the colonists. This was due to their policy of not interfering in the religious affairs of others in regard to their own interest, and as such were able to observe Zakat as a means of introducing levies or taxes in the form of traditional customs.

However, the colonists were able to overcome this aspect of non-interference in religious matters, and were thus able to focus their attention on collecting taxes based on economic performances, through mining and petroleum. The Ummah who were not familiar with such activities were only capable of looking on, which in fact was a form of colonist exploitation.

The Ummah then began to develop and through the spirit of patronism or nationalism. Through this the Ummah were able to copy the western system. Zakat too was maintained as a pillar of Islam, but not in the way it had functioned during the lifetime of Allah´s Messenger (s.a.w.).

As a result of such, the situation of the Ummah did not improve much as it did in relations to development and progress or in materialism. The poor still continue to remain high, scattered around and looked after on selection or through stages. Their well being is always dependent upon the generosity of others, alms, charity, donations, including Zakat.

3. Modernisation through Western institutions

Having achieved independence through nationalism the Muslims were able to establish a country. The process of collecting Zakat left behind by the colonists was continued, because it was collectively agreed upon by previous Ulama´, which of course was in line with colonist policies of non-interference in religious matters. And as a result of such there has no been much improvement in the management of Zakat….only after five decades later…

The development and progress that has been achieved by this country after independence, has caused leaders to seek modernistic approaches towards Zakat management, notably institutionalising it. Apart from this efforts are being made to seek out domains that can be made Zakat payable, such as professionals, profits from investments etc.

The management of Zakat has moved in the direction of being corporatized…and now most probably globalized, notably through the joint cooperation between Islamic countries throughout the world.

In the meantime the rate of Zakat payment continues to be based on percentage. When taxes are already found to be a burden to the Ummah, are they to make payment of Zakat also? Therefore, a solution has been instituted to reduce this burden upon the Ummah.

The same has taken place with its distribution. The poor continue to enjoy the distribution of Zakat. Apart from this, excess funds have been directed for the benefit of the Ummah in the form of businesses. Sometimes excess Zakat funds awaiting its time to be distributed are invested for the benefit of the Ummah. This effort is looked upon as being intelligent even though such was not in use at the beginning when Zakat was first introduced.

As a result of such, what is expected out of Zakat is its capacity to reduce the burden of the Ummah, to bring the Ummah closer, to unite the Ummah and to develop the Ummah, which is not taking place according to its actual scale of involvement Although the country and the services of the Ummah have improved, the Ummah still remains at a level of poverty, living still in neglected villages away from progress, hoping for sympathy for those above, living as farmers, or as migrating workers from rural areas to towns and cities.

The wealth and property owned by Muslim nations and the Ummah is not capable of uplifting the Ummah to great heights, while the mechanism for Zakat does not function as it used to do during its inception.

So just how can the Ummah possess the capacity to bring about change and have a huge impact as it did 1400 years ago when it no longer possess the mechanism and function of this pillar of Islam (Zakat)? Whereas this pillar of the Ummah (Zakat) involves wealth and property; which has become the agenda of rulers; neglected and sidelined in policies involving progress and development; detached from the enthusiasm of efforts and struggles…and today in this age of modernisation, this ´pillar´ of Islam is modernized without according it the desired role and function due to it in accordance to what was taught by Islam, notably Allah´s Messenger (s.a.w.).

No one can declare that the progress and development presently enjoyed by the Ummah is the result of Zakat, as it did in the annuals of Islam. They have all been related to development policies of the government, through the ability to acquire loans from the World Bank or UNDP, the result of government´s wisdom in maintaining political harmony etc.

There is no mention of even the slightest role involving Zakat in the process of national development and progress. If at all any mention is made, it involves businesses that are macro financial, not at the level of industry, what more at corporate and investment levels at global and international levels. Businesses involving micro finances are finally being implemented in comparison to macro finances.

RESTORING THE IMPACT OF ZAKAT

Comparisons and questions that are being raised are based on what was undertaken through Zakat when it was first introduced by the Prophet (s.a.w.) 1400 years ago at Madinah. Muslims who consisted of the Ansar (Madinites) and Muhajirin (Meccans) were found to have fulfilled their obligations towards Zakat with great effectiveness. Their ability to amass wealth and property became an example to others at the time.

The success of managing Zakat during the Righteous Caliphate caused other races to feel that they were being challenged by the Ummah. In fact that is what actually took place. Zakat which was maintained as a fund enabled the Ummah to function extremely well, so much so that they became a strong community, feared by others, notably the Jews and the pagan Quraish.

The results can be witnessed in the annuals of Islam, where a united Ummah were able to demand their rights to Hajj (Pilgrimage). The refusal by the Quraish of Mecca caused them to be attacked, which resulted in a treaty permitting the Ummah to perform the Hajj without hindrance.

After that, there was no turning back. The Ummah was capable of defeating anyone, while Zakat continued to play an important role in the development of the Ummah as a model of Islam.

If it is investigated in detail as to how Zakat could play such a role as this, we will note that it was the result of the establishment of an effective Zakat mechanism, which no doubt was beyond their capacity and intellect at the time. All this is the result of the role of the “amil” as a collector and distributor of Zakat, which was very effective and efficient.

In other words, for Zakat to become an effective source the following can be considered:

Firstly, Muslims at the time possessed complete details of the population. This information is important as it is a means of measuring the strength and the influence of the Ummah in a society made up of different races and religions. This aspect can be further expanded to include strategies, planning etc.

Secondly, demography – notably concerning age and sex. This is important in determining human capital as well as looking into how far they are involved in economic and social activities. The same can be said of administration and leadership.

Thirdly, residence, location and topography of the Ummah are important because they identify the location of Muslims within an area, whether they are in groups or scattered around. This is important in identifying an area and the Ummah´s role in practical and realistic terms.

Fourthly, the wealth and potential owned by the Ummah. This too is important because it is a source of strong financial support, because every initiative requires stable financing. This is one of the reasons why the collection of Zakat during the Prophet (s.a.w.) lifetime was made into a fund. The same is applicable concerning the potential of economic development by the Ummah.

The Fifth - loyalty and the spirit of striving (Jihad). The way in which the Ummah gives out Zakat and receives it are indicators of loyalty and the willingness to make sacrifices for Islam and the Ummah.

The Sixth – the aspect of security. This deals with the security and safety of the Ummah. If it is secure, it means that the Ummah is strong, but if it is not, it means that the Ummah need to do something about it so that they can strengthen their position.

The Seventh – the aspect of sustainability. This is closely related to family life, neighbourly relations and social relations. Sustainability is important in determining the Ummah´s capacity to face any threat or challenge from any direction.

The eight – deals with the level of the economy of the Ummah. The total number of payees of Zakat reflects the state and position of the economy of the Ummah. Steps can be taken to plan such in accordance with the ability of the Ummah, based on the economy of the Ummah.

Apart from the eight points mentioned above there are many more aspects. These include sincerity, honesty and the seriousness of the Ummah in administrating and managing Zakat. They should not manipulate laws governing Zakat, but instead enable Zakat to be successfully applied to elevate the problems of the Ummah and religion. Only in this manner can a united Ummah, with one voice, be capable of bravely fulfilling the commands of Allah.

This will result in the existence of consistency and unanimity which is indeed extremely radiant, notably to an Ummah who is just about to rise within society which is already established, and who is not offered opportunities by other approaches to life except those observed by their ancestors.

CONCLUSION

The impact of Zakat as mentioned above needs to be restored for the benefit of the Ummah´s future.

The Ummah cannot look upon Zakat only from the perspective of accumulating wealth and property. The Ummah cannot also look upon Zakat as an act or deed that can develop financial strength or the economy of the Ummah only.

Zakat needs to be viewed in the context being a model of Islam in totality, not only involving wealth and property, but also including the loyalty of the Ummah; its sustainability which depends on the closeness of the Ummah, just as it has been mentioned in the eight points above.

It is not the result of modern management or the introduction of all kinds of new institutions emphasizing the collection of Zakat or its distribution, but the return to the original teaching of Islam concerning Zakat, including its mechanism, which is capable of determining its impact upon the Ummah.

The return of Zakat to being a ´pillar´ of Islam is necessary in order to prevent confusion, and to remove the feeling of being used or exploited. Willingness and loyalty of the Ummah needs to be raised and this can be achieved if the management of Zakat is reverted back to its original foundation in Islam.
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