The concept and the practice of zakat is very comprehensive in the many ways that it can assist the poor, those facing risks as well as the destitute in a society. The practice of zakat does not only offer positive impacts to an individual zakat provider or receiver, it is also closely related with the blessings of one's belonging that can lead to economic and political stability, social well-being and equality as well as sustainable imaan and akhlak (faith and behaviour). About this, the Quran has testified:
"Take zakat from some of their property, with that zakat you cleanse and purify them and pray for them. Verily your prayer is peace of mind for them. And Allah is Hearer, Knower." (At-Taubah: verse 103)
It has been revealed through research that the economic system generated through the practice of zakat has positive impacts that subsequently benefit the individual, the society and the country at large. Thus, the prospects brought about through the practice of zakat should be optimised to enhance the growth, development and sustainability of Muslims in particular and human values at large.
Recent studies have focussed on three primary aspects of zakat. These include collection, distribution along with management and administration. Findings of the study have elaborated that the collection of zakat essentially requires constant improvisation and empowerment.
One of the imperative components that should be given more emphasis is the competence of the amil (zakat collector) in zakat institutions.
During the early days of Islam, Prophet Muhammad (peace be upon him) had appointed and instructed Muaz bin Jabal, who was among the prominent individuals in dealing with 'halal' and 'haram' (legal and illegal matters) among the sahabat (the Prophet's companions), to educate the people of Yemen about the importance of zakat. If this account is considered, it will become clear that the collection of zakat should not be regarded in an unplanned manner by the zakat institutions. Numerous programmes related to advancing zakat collectors' knowledge about zakat, accounting aspects, moral and ethics, appearance and communication skills and more should be consistently and continuously organised in order to enhance the competence of zakat collectors and ultimately empower them.
The practice of zakat is undeniably absolute and fixed. Yet its implementation and the sources of the tax are flexible and adaptive along with time. This is parallel to the definition of zakat itself, al-nama'atau al-mal (growing and expanding belongings/properties). This significant development can be evidently seen in these modern days where it has been proven by many research and discussions that conclusively suggested that there are new belongings/properties that fall under the purview of zakat based on qiyas and talil methods. These findings have significantly contributed towards the increase of annual zakat collection that indirectly intensified the prospects of zakat in boosting and enhancing economic and social growth of Muslims.
Modern technology such as financial technology (FinTech) should be utilised in the collection of zakat. Financial technology lays stress on transparency, efficacy as well as cost and time efficiency. As such, it can assist in sculpturing and amplifying the society's trust on zakat institutions during the zakat collection process. Should this revolution of technology be brushed aside, it is feared that zakat institutions may receive a cold response from the society. Easier forms of zakat collection will also be in accordance with the Sustainable Development Goals (SDGs). The efforts of zakat institutions, that eased the payment processes of zakat payers by introducing payment options like internet banking, mobile banking and more, need to be commended.
The second crucial aspect is Zakat distribution. The handling of this aspect in the most transparent and professional manner can allow the realisation of Maqasid Syariah in zakat itself. This refers to the ability of the zakat recipient to eventually become zakat payer. In other words, this explains that transparent and professionally handled zakat can assist in the transformation and empowerment of individual Muslims (Ighna' al-Faqir). This absolutely requires a paradigm shift among the asnaf (zakat recipients) to fully utilise the zakat received, not only to support their lives but also to use the zakat provided as a long-term financial assistance to promote resilience in them by ensuring an improved standard of living for them. This shift, undeniably, should be led by the zakat institutions.
In order to reach this goal, there are two aspects that need stringent and rigorous review. These are the consumptive and productive aspects. The majority of the zakat collected is channelled to the consumptive sector in the forms of continuous or one-off assistance (further data is needed to support this). Without denying its importance, this type of distribution will not be able to completely transform the asnaf as they totally rely on the zakat received as their means of support without putting in their own efforts to improve their standards of living.
In order to move forward, the distribution of zakat should be broadened and strengthened in the productive sectors through the approach of microfinance in the forms of qard al-hasan, musyarakah or musyarabah. It is pertinent here to mention that most of the initiatives under the United Nations Development Programme (UNDP) through Sustainable Development Goals (SDG) projects (2030) can be materialised if the prospects of zakat are optimised. The collaborations between Badan Amil Zakat Nasional (BAZNAS) of Malaysia and UNDP for these past few years is something that deserves acknowledgement and commendation as it serves as a catalyst for more government and zakat institutions in all Islamic countries where similar mechanism can be employed. From the Maqasid Syariah perspective, these SDG projects are in accordance with the aims and objectives of Shari'ah that wants to materialise maslahah (benefits) and eradicate mafsadah (problems). Additionally, all the 17 SDGs are similar to the five Maqasid Syariah outlined by muslim experts.
The asnaf spectrum too should be widened to ensure that zakat can significantly contribute towards the economic and social growth of the Muslims. This does not mean that we need to invent or create new categories of asnaf. It is more about widening or providing detailed descriptions or definitions of each asnaf category. In Malaysia, for instance, the description of asnaf al-Riqab has been expanded to the groups in society who are at risk or are experiencing aqidah (belief), social and criminal issues or crisis. Thus, the zakat collected can be channelled towards organising intervention or rehabilitation programmes or activities in supporting and helping these individuals.
Zakat which serves as an Islamic financial instrument is beneficial at addressing the refugee crisis, the destruction of the environment due to climate change or natural disaster to chaos and suffering caused by political and military unrest, unemployment and retrenchment. It may provide critical assistance before, during or after the crisis or disaster and those experiencing or at risk of any of these tragic occurrences can be classified according to the suitable categories based on qiyas and talil..
Dr Muhammad Abdul Mazid, a retired secretary, is a former Chairman of the NBR.
mazid.muhammad@gmail.com