​#    ​​​Title ​  Authors
​​ ​​​November, 2019 ​
​ 03-2019 Zakat Law and Islamic Religious Revenue: New Sources of a State Revenue  Abdul Ghafar Ismail, Muhammad Hasbi Zaenal 



The state constitution makes a provision that they can expand the sources of revenues for socioeconomic purposes. Among these revenues are zakat, fitrah and baitumal and similar Islamic religious revenue. This paper will present an evidence based on the consolidated account in several states (Brunei, Indonesia, Malaysia and Singapore). The results will try to prove that (i) there are several advantages to compiling a consolidated account, such as being able to centralize the planning, and reporting of the revenue. In addition, it also helps in formulating the public policy. However, the current practice shows that these revenues are not consolidated as a state account; (ii) in relation to (i), how could the public policy be created and implemented; (iii) it may raise the issues on distribution (classification of zakat recipients, priorities and allocation mechanism) in order to improve the effectiveness of zakat distribution. This paper may have an impact on the disbursement made by the zakat institutions in one state should be recognized and endorsed by the relevant authorities or operational regulations.

Keywords: institutional economics, zakat, law, government revenue, Islamic Religious Revenues JEL Classifications: H23; K22; P34; P51; Z18;