Empowering Financial Instruments For National Development - Academician
KUALA LUMPUR, June 19 (Bernama) -- In addition to zakat, the Islamic financial system has several methods of collecting public wealth for use in purposes determined by Islamic law, according to a lecturer at a local university.
Dr Abu Hafiz Salleh Hudin, senior lecturer in the Department of Quran and Sunnah Studies, Abdul Hamid Abu Sulayman Kulliyyah of Islamic Reveal Knowledge and Human Sciences at Universiti Islam Antarabangsa Malaysia (UIAM), said that there are several financial instruments discussed by Muslim scholars, including taxation, which can be applied to meet the needs of national development and administration.
According to him, as stipulated in the Al-Quran and Sunnah, zakat functions by taking a certain portion of wealth from eligible Muslims and distributing it to eligible recipients.
“Throughout history, since the time of Prophet Muhammad SAW, zakat has developed significantly, both in terms of collection and distribution. Through the extensive scholarly tradition of Islamic jurisprudence, zakat has been more effectively utilised across the eight recipient categories (asnaf): the poor, the needy, zakat collectors (amil), reconciliation of hearts (muallaf), freeing captives (al-Riqab), those in debt (al-Gharimin), in the cause of Allah (fi sabilillah), and the wayfarer (Ibn Sabil).
“The obligation to pay zakat is extremely important in Islam because it is one of the pillars of Islam. The first Caliph, Saidina Abu Bakar al-Siddiq, even decided to go to war against those who refused to pay zakat after the death of the Prophet Muhammad SAW in the 11th year of Hijrah,” he said in a statement today.
He explained that the main function of zakat, besides purifying the wealth of Muslims categorised as rich, has been proven to assist other Muslims in need, helping them rise out of poverty or financial hardship. However, the use of zakat funds is limited because the recipients have been specifically identified by Al-Quran and Sunnah texts, even though there is some room for expansion through contemporary Islamic scholars' ijtihad (independent reasoning).
In this regard, he said that to meet the needs of national development and administration, several financial instruments besides zakat have been discussed by Muslim scholars since the 8th Century Hijrah, including taxation. Taxation refers to the charges imposed by the government on individuals, companies, or goods for public expenditure.
“From an academic perspective, the legality of taxation in Islam has been a subject of debate among Muslim scholars—whether it is prohibited from being collected or permissible for the government to impose. Among the notable classical and contemporary scholars who opposed it are Ibn Muflih, al-Hijawi, Ibn Hajar al-Haithami, and Mulla ‘Ali al-Qari, along with Islamic rulings from certain countries such as Saudi Arabia and Brunei.
However, he added, a number of other Muslim scholars state that the government is permitted to implement taxation policies as long as the objective is to serve public welfare and support the basic functions of the country’s administration.
Among the scholars who supported the instrument of taxation are classical scholars such as Ibn Hazm al-Andalusi, Ibn Taimiyyah, Abu Ishaq al-Shatibi (Al-Syatibi), and Ibn Khaldun. Meanwhile, contemporary scholars who assess the permissibility of implementing taxation policies in an Islamic state include Mahmud Shaltut, Muhammad al-Ghazali, Abu al-A‘la al-Maududi, Yusuf al-Qaradhawi, and Ahmad al-Raysuni.
Abu Hafiz said that the evaluation made by these scholars was not only based on their understanding of the religious texts (dalil), but also on the current realities of the state administration.
Istinbat (the process of arriving at Islamic law) they undertook involves understanding the words of Allah SWT in Surah al-Tawbah, verse 41, and Surah al-Kahfi, verse 94, where there are indications and signs of an obligation to give wealth for public interest beyond the zakat instrument.
At the same time, there is a narration attributed to the Prophet SAW regarding the existence of another right in a person's wealth besides zakat, as reported by Imam al-Tirmizi.
"Although this narration is considered weak (dhaif), it is supported by the general meaning of similar statements with authentic narrations from many companions and successors (tabi’in) such as Umar al-Khattab, Ali ibn Abi Talib, ‘Aishah, al-Hasan al-Basri, and Ibrahim al-Nakhaie," he said.
According to the lecturer, Abu Ishaq al-Shatibi once concluded: "If a ruler, obeyed by his people, needs to increase the number of soldiers to protect the country's borders as well as preserve the stability of a growing power and its expanding territories, while the national treasury (Bait al-Mal) is insufficient and the needs of the army continue to grow, then the ruler—provided he is fair—may impose taxes on the wealthy citizens to meet those needs."
Al-Shatibi further stated: "This issue must be discussed, and the public interest (maslahah) in this matter is clear. If leaders of today do not implement such a system (that is, taxation), the authority of the leadership will be weakened, and the Islamic state will become vulnerable to control by non-Muslim powers (enemies). This is provided that the power held by the leader is used justly," said Abu Hafiz.
Besides that, the function of taxation encompasses the comprehensive needs and development of the country compared to the approval to use zakat funds that are limited, although both share similar functions and objective.
Therefore, he emphasised that it is a shared responsibility and obligation for all citizens to fulfil their tax obligations as it too can yield goodness, spiritual reward, and development that benefits everyone.
At the same time, he welcomed the commitment of the MADANI government, as consistently emphasised by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, in prioritising sound financial governance of the country.
"The fulfilment of tax obligations by Malaysians will be much easier if the tax collected is seen and felt in the form of benefits. Thus, a balance is necessary between the people’s responsibility to pay taxes and the government’s responsibility to manage tax revenues prudently, without extravagance and leakages. This balance is crucial to achieving national harmony, cooperation, and development.
"Ultimately, it is hoped that Malaysia may embody the characteristics of a nation described in Surah Saba’, verse 15: ‘...(your country is) a good country (safe and prosperous), and (your God is) a God who is most forgiving’,” he added.
-- BERNAMA