This study incorporates Zakat into a simple macroeconomic model of an Islamic economy and analyzes the role of Zakat in the national income determination. The reduced form aggregate consumption function suggests that the determinants of consumption are: Zakat expenditure, taxes, income, and asset holdings of individuals. Zakat could be used as a counter-cyclical policy through the discretionary...

In the Muslim system, Zakat functions as a means to reduce inequalities and eradicate poverty. Zakat means growth, extension, and purification. It is a usually annual premium charged on all accumulated productive wealth and on a variety of agricultural produce. Various rates are used. In the past, Zakat was paid on a self assessed basis and given to the needy. Due to influence on Sunni M...

This study assesses the effectiveness of Zakat as an alternative to microcredit in alleviating poverty in Bangladesh. Through the Propensity Score Matching (PSM) techniques, this study reveals that the impact of zakat scheme has proven higher than microcredit programs. Besides, this study also discloses that zakat scheme significantly increases both income and expenditure of the recipients in c...

This work deals with the development of android-based financial studio, an integrated application for calculating tax, pension, zakat, and loan. Financial studio can facilitate employers of any department and other individuals. The application is developed using MIT app inventor-based android platform. The financial studio has four computational modules, namely: (i) tax, (ii) pension, (iii) zak...

historically, the islamic state collected zakat (similar to the tithe of other regions) as national income. in indonesia, the private sector can raise zakat funds more effectively than the government. in 2010, zakat became tax-deductible income. this paper tries to analyze some factors that affect preference for zakat as a tax deduction in indonesia. the effectiveness of the regulation is also ...

The main objective of this study is to provide a comprehensive description as well as evaluation of the emergence of zakat System. Simultaneously we have to analyze its contribution in the social and economic development in Pakistan. Consequently on the basis of this analysis, we may be able to establish a significant relationship between zakat and social/economic development. This system is to...

Historically, the Islamic state collected zakat (similar to the tithe of other regions) as national income. In Indonesia, the private sector can raise zakat funds more effectively than the government. In 2010, zakat became tax-deductible income. This paper tries to analyze some factors that affect preference for zakat as a tax deduction in Indonesia. The effectiveness of the regulation is also ...

charity (zakat) has different meanings; one is the literal meaning and the other is the religious one. his excellency ali (peace be upon him) paid his charity (zakat) while praying when he hears a poor man's words asking for help; he donated his signet. different poets have poems about this event.