Tax deduction of 'zakat' must apply to non-Muslims

Tax deduction of 'zakat' must apply to non-Muslims

The law to make the religious requirement for Muslims to donate
at least 2.5 percent of their wealth to charity (zakat) tax
deductible has come into effect. Sociology of religions expert
Abdul Munir Mulkan of the Yogyakarta-based Kalijaga State Islamic
Studies Institute (IAIN) talked to Sri Wahyuni of The Jakarta
Post. The following are the highlights of the interview.

Question: How do you view the forthcoming implementation of the
new law on making zakat donations tax deductible?

Answer: It's an interesting development that might be the answer
to what has been a political demand of Muslims in the country.
But, problems will possibly also arise, especially regarding the
planned establishment of the National Zakat Donations Board by
the government, mostly because there are numerous similar non-
governmental agencies in the community, all working under
different names, that carry out the same job of collecting zakat.

Therefore, the government should accommodate and recognize the
existing zakat bodies as authorized collectors. In such a case,
the government-established board would act mainly as an
administrator. It would not be wise for the government to ignore
these bodies as this could create a very complicated problem.
Could you elaborate?

The biggest problem with the establishment of the zakat board
would be the people's (lack of) trust in it, especially regarding
its ability to convince the community that it redistributes to
the community all that it collects from the community.

So what is also important for the government is to provide
clear rules and regulations on the issue to prevent manipulation
from occurring in the board. Transparency should be a high
priority.

Of no less importance is the capability of the House of
Representatives to control the board in collecting and
distributing zakat.

Deciding that zakat maal (as opposed to zakat fitrah, the
obligatory contributions paid at the end of Ramadhan) is tax
deductible is good, and so is the government's policy of
formalizing the body that collects and distributes zakat. Yet,
there are certain things that the government should take into
consideration.
Would these include a feeling of being discriminated against
among non-Muslims whose religions also hold charity in high
regard?

That's true. Besides the internal problems that might be
generated within the Muslim community itself, there are also
possible problems concerning the adherents of other religions.
Under different names or terms, other religions also collect
charitable donations from their community that are considered as
much a sacred duty as the zakat that Muslims are required by
their religion to pay.

The government must take this into consideration. The policy
must be extended to the followers of other religions that also
have similar requirements. Otherwise, problems could emerge that
the government would find difficult to handle in the future.

So, is this policy discriminatory?

Yes, you could take it that way if the government does not
complement the policy with regulations that accommodate existing
zakat agencies as authorized zakat collectors, or if it ignores
similar charitable practices on the part of other religions.

Therefore, to avoid being considered discriminatory, the
government should also extend the same facility to the followers
of other religions -- the government must also recognize similar
religious obligations on the part of non-Muslims as tax
deductible.
Is it wise to recognize such religious obligations in civil law
and make them tax deductible?

Actually, the idea of converting zakat into a tax obligation
or making it tax deductible has long been discussed among
Muslims.

From the theological point of view, there is no problem with
it. The only problems would likely be political or
administrative.

So, if the concept (of formalizing zakat) could be developed
and could be widely accepted, it would indeed be an interesting
breakthrough.

And if the government was able to assure Muslims, who comprise
the majority here, that the board was able to contribute
something to the community, Indonesia might not need aid from the
International Monetary Fund.
How is that possible?

I once made a rough calculation about the amount of money that
could be collected in a year if all Muslims in Indonesia were to
pay their zakat. The figure I got was amazing.

I forget the exact amount, but if it were deposited in a bank,
the monthly interest could feed all Indonesians throughout the
country for a day. Just imagine how useful that sort of money
would be if it were used to help poor people in Gunung Kidul
regency (in Yogyakarta), for example.

Thus, we would have an alternative to (the negative aspects
of) capitalism as a result of which the poor became poorer while
the rich become richer.

Therefore, the government should invite all elements of
society to participate in a debate on all the types of charitable
work required by the various religions so that the law could be
more of a help and of more benefit to the people.

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"Under different names or terms, other religions also collect
charitable donations from their community that are considered as
much a sacred duty as the zakat that Muslims are required by
their religion to pay."