Income Tax vs Zakat.

Wed, 29 June at 11:31 pm INCOME TAX Vs ZAKAT

I refer to the article " Our Taxation System is Heading for an Economic Disaster by Richard De Lon.

I have to correct some misconception written.

Firstly "The present system of taxing only non- Malays while the majority Malays only pay Zakat...."is a mischievous statement.

Why the need to raise this point, bringing in racial sentiments, for we know besides death, tax is a certainty, regardless, except for some exclusive few. ( l am referring to certain individuals trying to escape paying or not wanting to pay tax. But for sure, they cannot escape death).

We know there are now many Malays in professional field; doctors, lawyers, accountants, engineers, surgeons, dentists, pilots and many more, earning high salary, and they, like those of other races are also paying income tax.

And we know, under the current system, there is no escape from paying because the tax portion is deducted in advance from their monthly salary.

The statement "Presently, only 35% of non-Malays is legally compulsory to pay income tax while 65% of Malays can opt to pay zakat to their Islamic religious bodies" is also misleading if not equally mischievous.

Our tax law is not carved in stone and can be reviewed and amended if necessary. As we know, income from certain level becomes taxable and of varying brackets, with different percentages to be paid. Whereas, in the case of Zakat, it is fixed at 2.5% of the income.

The writer is obviously naive on the subject of zakat. So as not to create more misunderstanding on the Islamic taxation system, here's a brief narration: The primary objective of Zakat is the distribution of wealth to the needy, the poor, the destitutes, the orphans, the homeless, those greatly in debt, and the travellers, 'musafirs' who are short of fund to complete the journey, amongst others. In any case, the well to do in any society, regardless of race, are expected to help ( financially) those categories of people. And there are many types of Zakat. It is not confined to income from salary alone.

There's: . Zakat pendapatan- tax on one's income/ salary.

Zakat harta- tax on one's property.

Zakat perniagaan- tax on one's business, if profitable

Zakat ternakan- tax on one's livestock such as camels, cows, goats, sheep etc.

Zakat pertanian- tax on one's plantation or vegetation/ agriculture products such as from planting of dates or other fruits including durians, padi, wheat, barley etc.

Zakat simpanan- from one's savings.

Zakat emas- tax on gold ( bars and jewellery kept, not in use)

Zakat fitrah- paid by the head of the house for all his dependants including infants during the month of Ramadhan but before 1st Shawal...the amount varies on the type of rice, normal grade, long rice or Basmati they consume. But an average is RM 7 per person.

As said, the Zakat is only 2.5% of one's income.

Under our tax system, those in the higher income bracket might have to pay 30% of his income as tax to the government.

If one is a very good, pious and compliant Muslim, still one cannot give all that 30% as Zakat. LHDN will not entertain that as deduction from the amount due.. Only 2.5% of the tax can be deducted for Zakat. The other 27.5% will go to the government.

It is inconceivable to believe that ALL Malays are good, obedient compliant Muslims who fulfill their 5 primary religious obligations: reciting the Shahadah, praying 5 times a day, fasting during the whole month of Ramadhan, PAYING ZAKAT every year and perform the Hadj at least once in a life time.

In that regard, we cannot expect every Malay/ Muslim to pay their Zakat.

What we have to accept however is that, religion is a personal matter between a person and God and the belief is not a compulsion. Simply said, not everybody pays and please be clear that paying of Zakat is not necessarily to the Religious bodies only for their religious agenda. The money is meant to be used primarily to help those in need and not for development. Individuals can pay their Zakat as they wish to individuals, to those who qualify to receive the Zakat.

As such, whatever handed will not be recorded nor will receipts be given for income tax rebates. The amount is not calculated to the nearest ringgit. It is more voluntary and self proclaim. But God knows. The act of paying the Zakat is a belief, as covered in the Al-Quran, and not a human rule.

Nevertheless the conventional tax system, to avoid economic disaster if we strongly believe it will happen, can be varied as deemed fit. But what's written in the AlQuran for the Muslims, cannot be changed.

So it cannot be equated with the human made tax system. What Richard De Lon wrote is totally miscued and misleading.

Further to bring in racial comparison is irresponsible and insensitive. The incorrect information would unnecessarily invite hatred and disharmony in our multi racial society. We should instead be working towards racial assimilation and integration.

KAMIL Bukit Jelutong 29th June 2022 .