The article compares zakat and tax as two obligations with different legal bases, yet both are obligatory for a Muslim who is also a citizen.
Examining Zakat and Tax for Muslims
In Islam we know of zakat as one of the five pillars of Islam. In essence, zakat is a certain portion of the wealth of a Muslim that must be given by the command of Allah for the benefit of others, according to a specified rate.
Zakat is given with the purpose of purifying the wealth of its owner and as an expression of gratitude for the blessings that have been given.
Then, in the regulations of our state, there is an obligation like zakat called tax.
Tax is a material obligation for citizens, to be paid according to a determined measure regarding a person's wealth and personal status, and is used to fund state expenditures, including for development used by the wider public.
These two matters cannot be separated from each other. We cannot fulfil only one of the two; that is, we must fulfil both.
Only when we have complied with both of these in accordance with their provisions can we be called Muslims who are obedient to the teachings of Islam and, at the same time, responsible citizens.
Now, where does the obligation to carry out these two matters come from, what are the foundations that make them obligatory, and what are the purposes of the obligation to pay zakat and tax. For that, this discussion will examine tax and zakat further.
The obligation of zakat originates from the revelation of Allah and according to the explanation given by the Messenger of Allah ﷺ.
QS. Al-Baqarah, verse 83:
"And [recall] when We took the covenant from the Children of Israel, [enjoining upon them], 'Do not worship except Allah; and to parents do good and to relatives, orphans, and the needy. And speak to people good [words] and establish prayer and give zakah.' Then you turned away, except a few of you, and you were refusing."
Therefore zakat is an obligation and is one of the pillars of Islam. Although it contains an element of material obligation, its status is that of an act of worship equal in standing to other acts of worship.
This obligation is given specifically to Muslims. Its status as an act of worship becomes a strong motivation for Muslims in carrying it out.
The obligation of tax originates from laws and regulations established by the government through the authorised body for that purpose, an obligation upon individuals or entities that applies to every citizen.
For Muslims, both obligations are equally binding, although in terms of the motivation for carrying them out, zakat is stronger even without any legal sanction, because of the relationship between servant and Allah.
In tax there is only a relationship between the citizen and the authority of the state that imposes the tax.
Another perspective on the obligation of tax is the law of reciprocity: when a person wants to enjoy benefits such as using public facilities (roads, health services), but refuses the mutually agreed obligation (tax), this can be seen as an act of reneging, which is nothing other than an attitude forbidden in Islam.
On the other hand, tax can also be seen as a means of equity and fairness, where most of the tax is used to subsidise those who are unable, which aligns closely with the concept of zakat itself.
Many opinions have now developed among the public about the similarities and differences between zakat and tax. Some equate them absolutely, that is, the same in legal status, method of collection, and use.
Others distinguish them absolutely, differing in meaning, purpose, method of collection, and use as well.
There are also those who see that on certain sides there are similarities between the two, while on other sides there are very fundamental differences between them.
A Muslim who owns wealth that has met the requirements for zakat, if they neglect it or refuse to pay it, the ruler, represented by the zakat officers, is obliged to compel them. This is in line with the word of Allah in Surah At-Taubah (9): 103.
"Likewise, a person who already falls under the category of taxpayer can have compulsory measures taken against them, whether directly or indirectly."
The basis for the management of zakat is founded on the word of Allah found in Surah At-Taubah (9): 60.
"Zakat expenditures are only for the poor and for the needy and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveller — an obligation [imposed] by Allah. And Allah is Knowing and Wise."
Based on this verse, it can be understood that the management of zakat is not carried out purely on an individual basis, from the muzakki handed directly to the mustahiq, but rather is carried out by an institution that handles zakat, one that fulfils certain requirements, called amil zakat.
It is this amil zakat that has the task of conducting outreach to the public, carrying out collection and recovery, and distributing it properly and correctly.
As for the management of tax, it clearly must be regulated by the state. This is in line with the meaning of tax itself, namely a contribution to the state (which can be compelled) owed by those obliged to pay it according to regulations, without receiving a direct return that can be specifically pointed to, the purpose of which is to fund general expenditures related to the duties of the state, in order to carry out governance.
From the perspective of building the welfare of society, zakat has a noble purpose, namely:
Ultimately, zakat aims to create welfare, security, and peace. Likewise with tax, some of its purposes are relatively similar to those above, especially in terms of funding, national development to create the welfare of society.
Meanwhile, there is a similarity in the purposes of zakat and tax, namely as a source of funds to realise a just and prosperous society that is equitable and sustains a balance between material and spiritual needs.
The fairly fundamental differences between zakat and tax are as follows:
The legal basis of zakat is the Qur'an and Sunnah, while the legal basis of tax is laws and regulations such as Tax Laws and so on.
Zakat is an obligation toward religion, while tax is an obligation toward one's state.
Zakat is obligatory specifically for residents who are Muslim, while tax is obligatory for all residents regardless of their religion.
The criteria for income and wealth subject to zakat and tax, their percentages, and their due dates are not the same. For example, the percentage of income subject to zakat is between 2.5%-20% depending on the type of business/work/profession, a rate already fixed by religion and not subject to change, whereas the percentage of income subject to tax in Indonesia today is around 15%-25%. And of course the criteria for taxpayers as well as the tax rate itself can change.
Zakat may only be used for the eight categories/asnaf specified in the Qur'an, Surah At-Taubah verse 60, whereas tax is used for a very wide range of purposes.
The wisdom of zakat is mainly to purify/cleanse the soul and wealth of those obliged to pay zakat, to distribute income more evenly within society so it is not enjoyed by the wealthy alone, and to improve social welfare, while the wisdom of tax is to fund national development in order to realise a just and prosperous society pleasing to Allah.
The obligation of zakat contains a moral-spiritual purpose. A Muslim feels they are carrying out a religious obligation they must bear, while also realising that the wealth they possess is the wealth of Allah.
In being grateful for Allah's blessing, a Muslim must give a portion of the wealth they possess for a purpose in accordance with the will of Allah.
The moral purpose can be seen from the view that fellow servants of Allah who are brothers must have concern, mutual help, and compassion for one another.
Zakat is given in order to realise unity and solidarity as well as to carry out economic democracy, by avoiding the accumulation of assets and the concentration of the economy in a single person, a group of people, or a company, which would not be in line with the principle of justice and equity.
In tax, a more material purpose is evident, namely to bring in as much material funding as possible into the state treasury to finance the needs of the state.
Contained within this is the thinking that citizens who receive benefit and protection within the state must reciprocate by helping the state.
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