IESTC WORKING PAPER SERIES

​#    ​​​Title ​  Authors
​​ ​​​November, 2019 ​
​ 02-2019 The Role of Government in Zakat Development in the Era of 4.0 Industrial Revolution  Abdul Ghafar Ismail

 

Abstract

In this study, we will be looking at the impact on zakat development, because Baitulmal is not considered fully mainstreamed. Industry 4.0 would create a change on the speed of collection and distributions are made. It means that government as zakat regulator and baitulmal as operator must understand how to develop and implement regulations and strategic growth plans while working with government to create solutions. The study suggests a few of the possible solutions. first, Industry 4.0 brings with it a set of unique tax challenges for both business executives and policymakers. Industry 4.0 scenarios would reflect the magnitude of the challenges ahead: the shift from just-in-time to on-demand manufacturing; the rise of aftermarket support; and the shift from products to data-driven services. Second, blockchain as alternative payment system can be used as money for paying zakat and also a form of savings that should be considered as zakat on property. Third, Industry 4.0 would affect the way the circular economy can be implemented.

Keywords: government, zakat, Industry 4.0, Baitulmal, circular economy, payment system JEL Classification: E58, H00, H83, O38, P43,