Harmonizing tax and 'zakat'

Muhammad Shodiq
Vice president, Syariah & MSME Academy head at CIMB Niaga

PREMIUM

Jakarta / Mon, June 11, 2018 / 11:07 am

Islam provides a novel concept of poverty and the poverty line, as implied in the concept of zakat, which is a charitable institution in the Islamic system of ethics. (Shutterstock/File)

Islam is a comprehensive way of life. It is a set of religious beliefs and a way of worship, it is a vast and integrated system of laws, it is a culture and civilization, it is a code for social and family conduct and, finally, it governs economic and commercial norms. Islamic economics is based on moral values and it is analytically less rigorous.

One aspect of adopting the Islamic economic system is the achievement of socio-economic justice and the equitable distribution of wealth. Poverty has long been a serious problem and a great challenge for Indonesia.

According to the World Bank, 59 percent of Indonesians are considered poor, with an income of less than US$2 a day. Poverty encompasses social, economic and political deprivation. The poor lack basic necessities and are deprived of a life that people value. They have little or no participati...