The Impact of Zakat on Poverty and Welfare in West Sumatera-Reference-Cited by-同舟云学术

The Impact of Zakat on Poverty and Welfare in West Sumatera

Published:2019-08-05 Issue: Volume: Page:367-377
ISSN:2394-4099
Container-title:International Journal of Scientific Research in Science, Engineering and Technology
language:en
Short-container-title:IJSRSET

Author:

Sari Dian Fitriarni¹,Beik Irfan Syauqi²,Rindayanti Wiwiek²

Affiliation:

1. Department of Economics, IPB University, Bogor, Jawa Barat, Indonesia

2. Lecture, Departement of Economic, Economic and Management Faculty, Bogor Agriculture University, City, Bogor, Indonesia

Abstract

Poverty is still a problem faced by all developing countries such as Indonesia. Indonesia's population is predominantly Muslim. One way to reduce poverty is by empowering the zakat system. zakat is an annual financial obligation of Muslim wealth which has reached a wealth surplus (Nishab). Regulations that apply in Indonesia, zakat as a deduction from taxable income has a potential value of zakat 1.57 percent of GDP. West Sumatera is one of the province of Indonesia that has obliged zakat for the State Civil Apparatus. West Sumatera has a zakat potential of IDR 1.7 trillion. This study aims to see how zakat can be an instrument of poverty reduction and a bridge between the poor and the rich. Not only in terms of wealth, but also in terms of spiritual. This study uses the BAZNAS Welfare Index method. The analysis found that the value of the BAZNAS Welfare Index was in the good category.

Publisher

Technoscience Academy

Subject

General Medicine

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