Differences and Similarities Between Zakat and Tax According to Sheikh Yusuf Qaradawi

Zakat and tax are both obligations that require a person to part with a portion of their wealth. However, they differ in essence, purpose, and provisions. In his book Fiqh Zakat, Sheikh Yusuf Qaradawi explains that while zakat shares some similarities with tax, as an act of worship commanded by Allah SWT, it has a foundation, purpose, and mechanism that cannot be equated with tax. For instance, zakat may only be distributed to those entitled to receive it, whereas tax is used to finance the state budget in general.

According to financial experts, tax is an obligation imposed on taxpayers that must be paid to the state according to regulations, without receiving a direct service in return. Its proceeds are used to finance general public expenditure and to realise various economic, social, political, and other state objectives. Meanwhile, according to scholars of Islamic jurisprudence, zakat is a specific right that Allah SWT has made obligatory on the wealth of Muslims, designated for those mentioned in the Quran as the poor, the needy, and other eligible recipients. Zakat is a sign of gratitude for Allah’s blessings, a means of drawing closer to Him, and a way to purify oneself and one’s wealth.

From these definitions, clear points of similarity and difference between tax and zakat emerge. Sheikh Yusuf Qaradawi explains these as follows. Firstly, the element of compulsion and obligation that generates tax revenue is also present in zakat. If a Muslim delays paying zakat due to weak faith, an Islamic government may compel them. Indeed, the government may even fight those who refuse to pay zakat if they possess the strength to resist. Secondly, just as tax must be paid to a public institution, whether central or regional, zakat is fundamentally to be handed over to the government through a body referred to in the Quran as the amil zakat. Thirdly, one of the provisions of tax is that the payer receives no specific direct benefit. A taxpayer pays as a member of society and only receives various facilities to continue their business activities. The same applies to zakat; the payer receives no specific direct reward. They fulfil the obligation as a member of the Islamic community, receiving only protection, care, and solidarity. They are obliged to give their wealth to help others, overcome poverty, weakness, and suffering, and to support the interests of the Muslim community for the upholding of God’s word and the spread of true da’wah, without expecting any recompense for the zakat paid.