Alwy Ahmed Mohamed, Abdulrohim E-sor

Zakat as a Legal Obligation in Sharia within the Context of Contemporary Taxation Systems

Introduction

Zakat as a legal obligation in sharia within the context of contemporary taxation systems. Integrate Zakat (Islamic almsgiving) into modern taxation systems. Discover a hybrid framework harmonizing Sharia principles with state fiscal efficiency, improving compliance & public finance.

Abstract

Objective: This study aims to investigate the feasibility and implications of integrating Zakat, an Islamic obligatory almsgiving system, into modern state taxation structures within Muslim-majority countries. Theoretical framework: The research is grounded in two complementary theoretical frameworks: fiscal sociology, which explores how taxation reflects socio-legal norms, and Islamic economic theory, which emphasizes wealth redistribution through moral and religious obligations. Literature review: The literature review highlights that while scholars such as Yusuf al-Qaradawi, Monzer Kahf, and Habib Ahmed have extensively discussed zakat’s socio-economic role, there remains a gap in practical models that link zakat to national tax regimes without compromising Sharia principles or state fiscal efficiency. The coexistence of these systems often leads to conceptual confusion and administrative inefficiencies, particularly in countries like Malaysia, Indonesia, Pakistan, and Saudi Arabia. Methods: Methodologically, this research adopts a qualitative, comparative legal and economic approach, drawing on policy documents, legal statutes, and case studies from selected Muslim-majority countries. It critically examines institutional frameworks, public finance policies, and compliance behavior, while also employing doctrinal analysis of maqāṣid al-sharīʿah (objectives of Islamic law) to assess religious alignment. Results: The findings reveal that integration is hampered by legal fragmentation, institutional redundancy, and low public trust. However, models that incorporate zakat into the tax system—either through deductions, exemptions, or parallel recognition—demonstrate improved compliance, reduced welfare burdens on the state, and enhanced civic participation rooted in religious ethics. The study proposes a Hybrid Integration Framework comprising legal recognition, digital registries, transparent oversight, taxpayer choice mechanisms, and intersectoral collaboration. Implications: The implications of this research are significant for policymakers seeking to harmonize Sharia-based obligations with secular governance systems. By fostering synergy between religious mandates and public finance tools, this study offers a pathway toward more equitable and accountable fiscal models. Novelty: The novelty of this study lies in its dual-theoretical lens and the practical policy framework it develops for integrating religious and civic financial duties in a way that aligns with both ethical and administrative imperatives.

Review

This study tackles a highly relevant and complex issue concerning the integration of Zakat, an Islamic legal obligation, into modern state taxation systems within Muslim-majority countries. The objective to investigate the feasibility and implications of such an integration is particularly timely, given the global discourse on Islamic finance and governance. The abstract clearly articulates the problem of conceptual confusion and administrative inefficiencies that often arise from the co-existence of these two systems. By aiming to develop practical models that bridge this gap without compromising Sharia principles or state fiscal efficiency, the research positions itself to make a significant contribution to both Islamic economics and public finance literature. A major strength of this research lies in its robust theoretical underpinning, which thoughtfully combines fiscal sociology with Islamic economic theory. This dual lens provides a comprehensive framework for analyzing the socio-legal, economic, and religious dimensions inherent in taxation and Zakat. The methodological approach—qualitative, comparative legal, and economic, drawing on policy documents, legal statutes, case studies, and doctrinal analysis of *maqāṣid al-sharīʿah*—is well-suited to the intricate nature of the topic, promising a thorough examination of institutional frameworks and public finance policies. The identification of factors hampering integration, such as legal fragmentation and low public trust, coupled with the subsequent proposal of a "Hybrid Integration Framework" (comprising elements like digital registries and taxpayer choice), directly addresses a critical gap in existing scholarship. The findings and the proposed framework carry substantial implications for policymakers seeking to enhance fiscal efficiency, improve welfare distribution, and foster civic participation by harmonizing religious mandates with public finance tools. The study’s novelty, stemming from its dual-theoretical perspective and the development of a practical, policy-oriented framework, positions it as a valuable resource for guiding the development of more equitable and accountable fiscal models. This research promises to offer a nuanced and pragmatic pathway for integrating Zakat into national tax regimes, thereby making a significant and original contribution to the intersection of religious law, economics, and governance.

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