Amimah Oktarina, Rina Desiana P-ISSN: 2527- 4163 Sources Of Malaysia’s Income .... E-ISSN: 2654-332X Vol. 4 No.1 April 2019
SOURCES OF MALAYSIA’S INCOME AND ITS ALLOCATIONS
IN CONTEXT ISLAM'S PUBLIC FINANCIAL IN NEWEST ERA
Amimah Oktarina, Rina Desiana
Lecturer, IAIN Bengkulu Lecturer, STIT University of Kupang.
ABSTRACT In order to build an Islamic economic system in Islamic state, a state should manage its finance based on the principles of Sharia, both in the terms of earning or incomes and their allocations on the earnings side, a state should manage their incomes according to Islamic way. Than the result of their incomes should be allocated in order to achieve their goals, which is the prosperity of society. Tax is a policy which is settled by a government and decided according to the needs or necessities of state its self. For example, Malaysia has decided and managed their incomes sources such as tax, zakat, and awqaf. And they were allocated according to the needs or necessities of a state such as infrastructure, salaries, subsidies, and also to eight parts of zakat receiver.
Keywords: Malaysia, The Source of Income, The Allocation of Income, Finance The Public of Islam.
Introduction the program of protection to the poor people Country is a place for some people to (pro-poor).1 In the classical discourse, the make their better life. One of the most Islamic government that once attended the urgent thing is the existence of a historical stage, has also exemplified the forms government whose duty and function is to of country's income and its allocations. manage the country. Through a country's In an Islamic economic system and an revenue budget (in Indonesia called Islamic country, the country have to manage APBN), income and expenditures will be their finances with sharia principles as well. managed in a planned way for the whole Even from its income or its allocation. For the people. For example increasing the rate of economic growth (pro-growth), expanding 1 Muh. Fadhail Rahman, “Sumber-Sumber Pendapatan dan Pengeluaran Negara Islam”, Al-Iqtishad, new employment (pro-job), and improving Vol. 5 No. 2, Juli 2013, p. 237.
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revenue side, the country should be able to So in this journal will discuss the source of collect their incomes from the Islamic Malaysia's income and its allocation in the Shari'a system. Things that accordance context of Islamic public finances of the with Islamic shari'ah are zakat, infaq, alms, newest era, in which the income can help waqf, rikazh, jizyah, khumus, fay, kharaj, Malaysia achieve their target which can be ushur, taxes and debt if other sources of used as a model for other Muslim majority income are not enough for the country's countries like Indonesia. This discussion still budget.2 And the results of the incomes refers to the context of the Islamic public collection should be allocated to achieve sphere in classical era. In other words, the the goals of a country, that is to achieve the focus or limitation of this discussion is Islamic welfare of its society. public finance which is a public property or Seeing the development of the times property owned by the Malaysian government and technological advances, it is stated that for the benefit and welfare of their society. the income of a country in the context of Discussion Islamic public finances is not entirely the A. Short Profile of Malaysia same in the classical era. But according to Malaysia is a constitutional monarchy Islamic public finances in classical times, with a parliamentary form of government. there are some country's incomes in Islamic The head of country is Yang di Pertuan public finance systems that still exist in Agung. He was elected by (and from Islamic countries, one of which is in among) the kings (rulers) of nine Malay Malaysia, which is one of the Islamic native states to hold position for 5 years. countries that shares the economic structure The executive power is held by the prime with Indonesia and is sustained much by minister, appointed by Yang di Pertuan manufacturing and agricultural sector in its Agung. Malaysia consists of 13 states and development.3 three parts of the federal territory. The nine original Malay states are Johor, Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, 2 Nurul Huda, dkk., Keuangan Publik Perlis, Selangor, and Terengganu. Islami: Pendekatan Teoritis dan Sejarah, (Jakarta: Kencana, 2012), p. 74. Together with Melaka (formerly Malacca) 3 Timbul Hamonangan Simanjuntak, “Penerimaan Perpajakan di Negara Asean”, Jurnal and Pinang (formerly Penang), they Ekonomi dan Studi Pembangunan, Vol. 4, No. 2, November 2012, p. 185. created the former Federation of Malaya.
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The other two states are Sabah and people use Malay language. Malay is the Sarawak. The three-part Federal national language (formally called Malay). Territory, called Wilayah Persekutuan, English is used in business and consists of the island of Labuan, the government. The Chinese language is also capital of Kuala Lumpur, and the new mostly used. And Malaysia's official city of Putrajaya (designated in 2001). religion is Islam, but the constitution Malaysia is divided into two guarantees religious freedom to all society. distinct areas, namely West Malaysia Many ethnic Chinese are Buddhist or (or Semenanjung) and East Malaysia Taoist. Most Indians are Hindus. Some of (Sabah and Sarawak on the island of the tribes of Sabah and Sarawak are Borneo). The independent Malaysian Christians; the rest follow the traditional nation was created in two stages. In native religion of their ancestors. 1957, a part of the land (later called The wealth of natural resources and Malaya) gained independence from high technology industries has spurred Britain. In 1963, Sabah, Sarawak, and Malaysia's economic development in Singapore were added to Malaya, thus general. Even its human resources creating the Malaysian nation contribute to the Malaysian economy, from (Singapore became an independent banking and real estate to local country). government and commerce, the service Most of Malaysia's 30 million sector accounts for almost 47% of residents live on the Melaya Peninsula Malaysia's economy. The service industry or Semenanjung Malaya, especially in also employs about half of all the national cities or near the west coast. The workforce. Industry-related tourism also indigenous Malays constituted the contributes greatly.4 largest single ethnic group (50%), followed by ethnic Chinese (24%) and B. Malaysia’s Income Sources and Its India (7%). There is also a small Allocation number of indigenous peoples, they 1. Taxes as Malaysia’s Income are Orang Asli. Sabah and Sarawak in Kalimantan are inhabited mainly by 4Pete, Profil Lengkap Negara Malaysia, http://www.kembangpete.com/2014/08/13/profil- Dayaks and non-Malays. Most of the lengkap-negara-malaysia/, the date: 10 Oktober 2016.
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Malaysia is one of the Islamic of tax that contributes the most to countries, although this country Malaysia's incomes. Indirect taxes and the Islamic country of the revenue consists of import duties, time of the Prophet and the period export duties, excise duties, sales tax, of Khulafa al-Rashidin are and service tax.6 separated by long periods of time So as in general, Malaysian and cultural differences, but the income can be obtained from the Islamic Shari'a remains the true collection of taxes. Overall the tax character and remains flexible for laws in Malaysia are friendly, even for all times and regions. This local taxpayers or foreign investors assumption implies that the fiscal who invest there. In Malaysia policy of the early Islamic state individual taxes and corporate taxes can be reformulated in accordance are applied, but Malaysia does not with the legal and cultural order of recognize Taxes on Wealth, Taxes on Malaysian society.5 Land, Taxes on Rewards, and State Therefore, acceptance and Taxes (Local Taxes). In Malaysia, allocation in the Islamic country is there are two institutions that are in essentially valid in Malaysia as charge of taxation issues, namely the well as in Islamic countries in the Malaysian Home Products Institute classical period of applying (LHDNM) and the Ministry of various taxes as a source, as well Customs and Excise under the as Malaysia, which implements Ministry of Finance of Malaysia. the tax system as a source of LHDNM is authorized to income in Malaysia. administer country taxes such as The country's income comes individual and corporate income taxes, from indirect taxes, direct taxes, income tax on oil and gas, tax on and non tax revenue. Indirect profits from transfer of land and taxes revenue since 1960 is a type building rights, and stamp duty. While the Ministry of Customs and Excise is
5 Supangat, “Kebijakan Fiskal Negara Indonesia dalam Perspektif Ekonomi Islam”, 6Timbul Hamonangan Simanjuntak, Conomica, Vol. 04, Ed. 2, November 2013, p. 101. Penerimaan…, p. 185. 22 Baabu Al-Ilmi Vol. 4 no. 1 April 2019
authorized to administer indirect of costs and consumption and other taxes consisting of Import Duty, recognized needs of the government Customs, Sales Tax, Tax on as a whole in an effort to derive that Services. income.7 Individual tax or income tax Malaysian companies are taxable of an individual is a tax imposed not on total income received from on income received by an activities worldwide, but only income individual whether originating or received in Malaysia is taxed only. sent to Malaysia. If the source of Earnings received from outside such income is from outside Malaysia are not taxable in Malaysia. Malaysia, it shall be taxable only For foreign companies, only income if paid in Malaysia and received received from Malaysia is taxable in by an individual who is a resident Malaysia. However, Malaysian of Malaysia. Non-residents, companies engaged in banking, however, are taxable only on the insurance, and marine and air income they receive in Malaysia. transport are subject to tax based on Every society is responsible global income. for explaining income taxes In some literature, one of them in obtained either inside or outside the book of al-Umm by Imam Syafi'i, Malaysia. Income sources that the tax is called jizyah.8 In Malaysia may be subject to income tax individual and corporate income taxes include income and profits of are the same as al-jizyah. Basically trade, professions and salaries, jizyah charged to the infidels living in incentives, income and profits an Islamic state, then on this basis based on salary, dividends, Malaysia implements the system of interest or discounts, rent, tax deductible zakat. royalties, pensions, annuities or
other periodic payments and 7 Eko Suprayitno, dkk., “Zakat Sebagai income in the form of non- stated Pengurang Pajak dan Pengaruhnya Terhadap Penerimaan Pajak di Semenanjuk Malaysia”, Inferensi, Vol. 7, No. 1, above. Taxable income is derived Tahun 2013, p. 28. 8 Gusfahmi, Pajak Menurut Syariah, (Jakarta: from income minus all other forms Rajawali Pers, 2011), p. 29.
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No different from the Islamic When the colonial period, the state in the classical period and management of zakat is placed under also other countries that apply the the power of Majlis Religion and tax system as one source of Malay Customs. In every village, income of his country. Then the zakat collection is done by the village results of tax collection funds in priest and will be handed over to the Malaysia are allocated for the kingdom as a source of Islamic construction of countries such as income. The payment of zakat through infrastructure, salaries of officials the imam of the mosque also shows and state employees. the belief in the person of the priest 2. Zakat as Malaysia’s Income and who can administer the zakat well. At Its Allocation this time the power of zakat is placed Zakat management in under every country and power under Malaysia has started since the pre- the head of the Islamic religion of colonial era. At that time the each country. management of zakat has not been There are several areas in formally appointed and the Malaysia that have established zakat payment of zakat is left to the institutions such as Selangor, Wilayah religious teacher or religious Persekutuan Kuala Lumpur, Pahang, teacher (acting as amil) and they Pulau Pinang, Melaka and Negeri will take it to the proper asnaf. Sembilan.9 And other areas that have This shows the zakat payers are not established the institution of zakat very confident with ustadz and then its management is under the religious teachers as their amil at institution baitulmal.10 This formation the time. The personal traits that is conducted to ensure the existed in ustadz and teacher at
that time became the principle of 9 Sanep Ahmad, dkk., “Penswastaan Institusi why zakat payers are very Zakat dan Kesannya Terhadap Pembayaran Secara Formal di Malaysia”, IJMS, No. 13 (2), Tahun 2006, p. confident and seem to be content 179. 10 Hairunnizam Wahid, dkk., “Pengagihan with their duty as amil. Zakat Oleh Institusi Zakat di Malaysia: Mengapa Masyarakat Islam Tidak Berpuas Hati?”, Jurnal Syariah, Vol. 17, No. 1, Tahun 2009, p. 100.
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management of zakat can provide accept the corporate zakat to a tax quality services to maximize deduction of 25%. customer satisfaction through The Malaysian government professional approach, use of the makes a policy by giving reduction to latest technology and based on individual zakat payers. Through a Islamic values. This will scheduled tax deduction model or a ultimately ensure the management monthly discount system (PCB), they of zakat is efficient following will enjoy a tax deductible equal to Islamic values. This role needs to zakat pay or zakat can be used to be consistent with the reduce taxes up to 100%. The purpose characteristics that need to exist at of this step is as one way of avoiding the institution that is fair, not the payment of double taxation to the deviant and efficient in its income of the payers of the zakat. management. Indirectly also he will provide Basically in Malaysia there is incentives to the Muslim community no law that regulates the zakat, as to pay zakat. The move is a bold act in Indonesia, however the people because until now other Islamic who pay zakat will be exempt countries do not provide the same from tax payment, because zakat incentives as the Malaysian and tax are considered the same, government does.11 which is equally used for the In Malaysia, every region has an benefit of the people. In 1978, the Islamic Council that has been Malaysian government ratified the authorized by the government to deal rule of each individual zakat with Islamic issues, including waqf payment can be a tax deduction. In and zakat affairs. Islamic councils are 1990 zakat tax deductions began located in 13 areas, namely Selangor, to apply to companies paying Johor, Perak, Terengganu, Pilau zakat with very small deductions, Pinang, Kelantan, Pahang, Negeri but in 2005, the Malaysian Sembilan, Kedah, Melaka, Sarawak, government issued a decision to
11 Eko Suprayitno, dkk., Zakat..., p. 11.
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Sabah and Perlis. And in an area Religion of Islam there is a contractual of partnership that is, Kuala agreement, which gives power to the Lumpur, Labuan, and Putrajaya, management of PPZ and also an amil coordinated by the Prime zakat. The contract covers several Minister's Office which oversees matters such as Hartasuci's duties and the Directorate of Islamic Progress the rules that Hartasuci must follow as and plays a major role for the the party to the management of PPZ national, and represents Malaysia and amil zakat. for the international level in Baitul Maal (BM) is an institution religious affairs. Under the Majlis owned by the Malaysian government, Agama Islam Wilayah where zakat is received by the Zakat Persekutuan (MAIWP) there is the Poll Center from 14 states deposited to organization of the Zakat BM. The government allowed PPZ to Pollution Center (PPZ) and Baitul take 1/8 of the zakat it received to pay Maal, who will be fully the wages of PPZ employees (as responsible to the Sultan or state amil). But the operational and salary government in the matter of zakat. of Baitul Maal's employees is financed PPZ only serves as a collection of by the state and the zakat collected in zakat funds, while the task of BM is entirely for the welfare of channeling zakat funds is the mustahiq.12 responsibility of Baitul Maal, The main function of PPZ is to where between the two bodies search for new muzakki, to maintain jointly under the auspices of the the continuity of payment, to enlighten Islamic Council of Religion. zakat, collect zakat, pay zakat receipt, The PPZ was first operated on to make daily, monthly, and annual 1 January 1991. The management reports, to build new counters and new of PPZ is under the company of channels for zakat payment facilitate Hartasuci Sdn. Bhd., Which is zakat payers, and add PPZ assets from responsible for PPZ management in front of Islamic Council.
Between Hartasuci and Majlis 12 Nurul Huda, dkk., Keuangan..., p. 182.
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overage amil wages after disasters, marriage and business. deducting all the shopping. While the Compassion Complex After the PPZ in charge of Darus Sa'adah is a refuge and collecting zakat funds, then Baitul education for mu'allaf, widows, and Maal who will be in charge of the the poor society.13 zakat funds allocated. Baitul maal Along with improving the welfare Malaysia undertakes programs of Malaysia, in 2003 the entitled to such as: receive zakat is among those earning a. School and business under RM 1,200. And those who get assistance. zakat from BM are people who have b. Medical assistance and home motors, television sets, refrigerators, rental assistance. and simple homes. Or if it does not c. Disaster assistance and have a house, rented by BM. Each education agency. family earns an average allowance of d. Al-Riqab support and RM 300 per month. Education and marriage assistance. health for the whole family, free of e. Student assistance Professions charge by BM. For education, in Baitul Maal Institution (IPB) addition to free SPP, they also get and agricultural assistance. school equipment such as books, bags, f. Help finishing gharimin and a set of stationery. School money and ramadhan help. uniforms are also provided with zakat g. Baitul Maal Scholarship. funds. If a poor family gets a disaster h. Help Hafidz Quran or fire, BM will compensate for that encouragement. loss. The distribution of zakat in Assistance was also outside the the territory of the fellowship for business capital, which is example, through direct aid recommended BM. For capital programs for the poor and needy such as food aid, financial aid, 13 Faisal, “Sejarah Pengelolaan Zakat di Dunia Muslim dan Indonesia (Pendekatan Teori Investigasi- medical aid, schools, school Sejarah Charles Peirce dan Defisit Kebenaran Lieven Boeve)”, Analisis, Vol. XI, No. 2, Desember 2011, p. uniforms, home contracts, natural 255.
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handling, most of it is channeled returns if managed properly. The through Amanah Ihtiar Malaysia result is certainly able to ease the (AIM). In a long-term program, government's burden in the provision BM builds the BM Proficiency of Islamic community development Institute. At the institute is capital and institutions initially borne provided various courses, such as by the source of acquisition of Baitul sewing, catering, and workshop. Maal. The status of waqf as a sadaqah BM also founded the BM jariyah that can give a perpetual Professional Institute, which reward to peaople who give the waqf teaches about secretarial and and prolonged benefits, and as a administrative businesses. And trigger encouragement to the public even BM also established a benefactor community to allocate university that is Institute of some of his wealth to this sacred goal. Higher Education Laundry In Malaysia the management and (IPTA). administration of waqf is placed under So in this case the PPZ plays the Islamic Council of every country, an important role in the collection and the State Islamic Council is the of zakat funds as revenue sole holder of all the waqf property in Malaysia that can help in building Malaysia. This case is established by public finances. And BM that law for every country. For example in plays an important role in the Selangor, Secretary General 89, the allocation of zakat funds so as to implementation of the Islamic achieve the target for the welfare Religious Administration (Negeri of Malaysia’s society. Selangor) 2003 states "Majlis become 3. Waqf as Malaysia’s Income and the sole trustee of waqf, vows and Its Allocation trustees". To assist in the affairs of Waqf is one of the forms of administration and management of transactions that can solve the waqf, the Kingdom of Malaysia has problem of mankind poverty in declared the establishment of Waqf, addition to zakat. Waqfs can Zakat and Haji (JAWHAR) on 27 potentially generate multiply March 2004. The establishment of
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JAWHAR is aimed at ensuring mosques and burial grounds, schools that the administration of waqf, and educational huts, farm fields, zakat, and hajj across the country gardens, hamlets and dams, leases, is more systematic, and vacant lots, buildings (shops, ruku, memorable.14 houses) another movable property.15 The Waqf management In addition to the cash waqf managed institution in Malaysia is by the Islamic Council of Islamic supervised by a supervisory board, Religious Institutions was also born the Board of Trustees of the Waqf trustee stock. Who is responsible for Foundation Malaysia is the managing stock endowments. Amanah Minister in the Department of waqf shares are operated through the Prime Minister Portofolio of bank. They offer these shares to the Religion, while the Vice Chairman public for a certain price. People who is the Director General of the buy these shares do not get any profit Department of Endowments of and the money used to buy the shares Zakah and Hajj (JAWHAR). is left entirely to the manager without Other members of the Supervisory them being able to ask for a return. Board consist of representatives of The profits will be managed by the the Islamic Council of the States government for the public interest. and a representative of the Waqf share is creating a waqf Ministry of Finance, a musytarak (group) through donations representative of the Economic received from the community into a Planning Unit, the Department of tube amanah waqf which will be the Prime Minister and three converted into fixed assets called representatives of the corporate badal or replace money.16 The main sector. purpose of the money collected is to In Malaysia, the waqf funds build means that can bring benefits to and property are in the form of 15 Siti Mashitoh Mahamod, “Pembentukan 14 Asmak Ab Rahman, “Peranan Wakaf Dana Wakaf Menurut Perspektif Syariah Dan Undang- dalam Pembangunan Ekonomi Umat Islam dan Undang Serta Aplikasinya Di Malaysia”, Jurnal Syariah, Aplikasinya di Malaysia”, Shariah Jurnal, Vol. 17, Vol. 15, No. 2, Tahun 2007, p. 61. No. 1, Tahun 2009, p. 121. 16 Asmak Ab Rahman, Peranan..., p. 123.
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waqf land, to buy new means to be a number of shares offered by MAIN used as waqf property, to invest in with the intention of donating it. All a safe sector so as not to lose the profits born from these shares are nominal value of waqf property.17 eternal in the form of waqf and not This conversion is done in the given to the buyer of those shares. form of property development, Among the states that implement this development of existing waqf land wakaf stock system is Johor, Pulau and various socio-economic Pinang, Melaka, Kedah.18 development activities that are Johor Corporation Berhad planned regularly for the welfare (JCorp), an institution under the Johor and interests of the Islamic State Empire in Malaysia, uses this religion share system by introducing a more The representation through innovative system, called Waqf the stock waqf scheme shows the Coorporate. JCorp does not sell shares welfare for Muslims because the to individuals or organizations as it money collected through the stock does in ordinary waqf shares. On the waqf scheme allows the money to contrary, JCorp personally donates its be used for various economic shares. For example, on August 3, development projects without any 2006, JCorp through its three limitations or constraints as waqf subsidiaries has committed its shares in the form of immovable objects. with an asset value of RM 200 The money is converted into million. JCorp also donates 75% stake immovable property and can be in travel oyster company that deals distributed more widely and not with Umrah and Hajj packages. limited to certain places and so on. Apart from Corporate Waqf stock are used to Endowments, JCorp also uses cash as finance waqf investment. An a moving object to provide health individual or an organization buys services to those in need, undifferentiated by Muslims and non- 17 Nilna Fauza, “Rekontruksi Pengelolaan Wakat: Belajar Pengelolaan Wakaf dari Bangladesh dan Malaysia”, Universum, Vol. 9, No. 2, Juli 2015, p. 169. 18 Ibid., p. 168.
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Muslims. JCorp realized this effort as providing highway facilities, by establishing Waqf An-Nur bridges and so on.19 Clinic Fund for the purpose of The wealth of waqf is developed building a hospital and Waqf An- with various projects that can bring Nur Clinic, under the management economic benefits to Muslims directly of Waqf Annur. Until 2007, the or indirectly. The results of the waqf Clinic Fund has succeeded in building leases and other waqf having five hospitals and clinics, projects will be distributed for the namely An-Nur Kotaraya Waqf welfare and interests of Muslims. For Clinic in Johor Bahru, Waqf An- example, such as giving assistance to Nur Hospital in Pasir Gudang people who are in asnaf-asnaf zakat; Johor, Waqf Clinic An-Nur Jamek assistance due to construction, Sultan Ismail Mosque at Batu management and directing mosques, Pahat Johor , Waqf An-Nur Clinic surau, madrassas, clinics, hospitals Majelis Agama Islam Negeri and others; assistance to persons Sembilan (MAINS) Seremban, affected by natural disasters, Waqf Clinic An-Nur Sungai accidents, medical care, orphans, Buloh Selangor. persons in custody; educational History proves that waqf assistance, Islamic awakening and plays a very significant role in the support for developing countries and economic development of a others related to the interests and country. Waqf has become a welfare of Muslims. means of redistributing wealth for The economic development economic development in a projects implemented in Malaysia are complete context. This is because using the endowments themselves, the waqf has been instrumental in returns from wakaf property or from providing education, health waqf stock funds. These projects centers, places of worship as well affect the economic development
19 Abul Hasan M. Sadeq, “Waqf, Perpetual Charity and Poverty Alleviation”, International Journal of Social Economics, Vol. 29, No.1/ 2, Tahun 2002, p. 136.
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directly or indirectly to the Islamic play a role in the process of economic community. development of the country. The Based on the analysis of the responsibility for the provision of role of endowments conducted education, health and poverty since the beginning of Islam and eradication which is the responsibility its implementation in Malaysia, it of the government is shared by the can be formulated that waqf can waqf institution as discussed above. play a role in economic But with the financial constraints that development in providing for the exist in waqf institutions in Malaysia, needs of Islamic society in the process of utilization of waqf Malaysia. So the source of properties is also the same received country's income from waqf can government assistance. This is be allocated for the welfare of because the State Islamic Council as Malaysian society, such as: the trustee holder of waqf managers a. Provide education. does not have sufficient financial b. Provide housing needs. resources to develop the waqf c. Provide health facilities. property that has been reproduced by d. Mobilize the economic the Muslim community. The activities of the community government has helped to develop the through the provision of endowments by providing allocations centers and places of such as developing projects for the business. country's development. e. Providing a place of worship. f. Improve the Malaysian Critical Study of Malaysia's Income Sources agricultural sector. and its Allocation in the Context of Islamic g. Handle the policy of Public Finance in The Newest Era orphans.20 Taxes regulate human relationships with Waqf institutions and the other human beings (mu'amalah), therefore Malaysian Government together they are part of the Shari'a. Since tax is part of the Shari'a, then as a trunk of a tree, it must 20 Asmak Ab Rahman, Peranan..., hlm. 136-143. have strong and solid roots. The root is faith or
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aqidah. Although taxes are not mentioned Tax is a policy established by the in the Quran as well as zakat. But tax is one government of a country, and established in of the policies within a country, which is accordance with the needs of the country. Just included in fiscal policy. as Malaysia has set its own source of income The country that imposed the tax as one of which consists of taxes, zakat, and waqf. All its instruments in country's income, such as three sources of income are allocated in Malaysia. So every citizen is obliged to obey the rules or policies that have been accordance with the portion, namely for established by his country or his infrastructure, salary or benefits, and to 8 asnaf. government. Because obeying the government is one manifestation of Malaysia implements zakat as a tax worship, as in al-Quran letter an-Nisa verse deduction, for individuals and companies in 59: Malaysia. This is applied so as not to double َ َ َ ٱ ِ َ ءَا َ ُ ٓاْ أَ ِ ُ اْ ٱ َ وَأَ ِ ُ اْ tax or dualism of collection, where a taxpayer is also obliged to zakat. So Malaysia applying ٱ ُ لَ وَأُوْ ِ ٱ ۡ َ ۡ ِ ِ ُ ۡۖ َ ِن َ َ ٰ َ ۡ ُ ۡ for Muslim individual or Muslim company ِ َ ۡءٖ َ ُد وهُ إِ َ ٱ ِ وَٱ ُ لِ إِن ُ ُ ۡ who has paid zakat income will be deducted or ُ ۡ ِ ُ نَ ِ ِ وَٱ ۡ َ ۡمِ ٱ ِ ِ َ ٰ ِ َ َ ۡ ٞ exempt from income tax payment. And income وَأَ ۡ َ ُ َ ۡوِ ً Who believe! Obey Allah, and obey the taxes are required for non-Muslim individuals. messenger and those of you who are in authority; and if ye have a dispute Such a policy is a manifestation of the concerning any matter, refer it to Allah and Malaysian government's efforts to implement the messenger if ye are (in truth) believers in Allah and the Last Day. That is better an Islamic public finance system. As has been and more seemly in the end.21 applied in classical times, that jizyah is obliged to non-Muslim citizens living in Islamic In the verse it is explained that countries. So Malaysia implements the zakat obeying ulil amri is one form of worship, system as a tax deduction for Muslim citizens then obey the rules set by the leader also and a compulsory tax for non-Muslim citizens. includes from the form of worship, as long Malaysia which has applied the instrument as the rule does not cross the line, or still in of zakat and taxes as one of the income for his the Shari'a. country. Even zakat can be tax deductions, and this is a manifestation of the Malaysian 21 Syaamil Al-Quran, Al-Quran, Tajwid, dan Terjemahannya: Dilengkapi dengan Asbabun government's efforts to implement Islamic Nuzul dan Hadist Shahih, (Bandung: PT Sygma, 2010), p. 87. public finances, but it does not mean that taxes
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should be abolished, on the grounds that of these two income instruments is for the the main source of state income is zakat, development of the country to achieve the and taxes are levied where necessary. welfare of its citizens. Nevertheless, the tax is still applied by the Malaysian state, as it corresponds to Conclusion one of the principles of state reconciliation In Malaysia individual and corporate according to the Islamic economic system, income taxes are the same as al-jizyah. namely the separation of the source of Basically jizyah charged to the infidels living reciprocation from Muslims and non- in an Islamic state, then on this basis Malaysia Muslims.22 So the Malaysian Muslim implements the system of tax deductible zakat. community is required to pay zakat, and Individual Muslim societies who have paid the non-Muslim Malaysian community is zakat will not be levied, but taxes remain in required to pay taxes. The tax deductible non-Muslim communities, as well as corporate zakat policy is also one of the government's taxes. Companies that have paid zakat can efforts to awaken the Malaysian Muslim reduce the taxes they bear. community to zakat. The source of state income in the context It has been explained in the Qur'an that of Islamic public finance of classical era that is the allocation of zakat to 8 asnaf. Today, still applied in Malaysia is taxes, zakat, and the allocation of zakat can be in the form of waqf. Which is where the Malaysian productive zakat, which is like creating government has allocated the revenue in jobs, and this is a manifestation of state accordance with the portion and place, with the development. So is the case with the tax aim of achieving the welfare of the community. appropriation in Malaysia, that is, as a state And from this explanation also proves that development. Malaysia has implemented an Islamic-based Although the allocation of zakat has economic system, with evidence of the been determined in the Qur'an, and the implementation of the system of zakat as a tax absence of the argument stating the tax, it deduction. The purpose of this step is as one is not wrong if the tax funds collected are way of avoiding the payment of double used as well as zakat, because the purpose taxation to the income of the payers of the zakat. Indirectly also he will provide incentives
22 Gusfahmi, Pajak..., p. 32. to the Muslim community to pay zakat. And as
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an example of a country that implements an Gusfahmi, Pajak Menurut Syariah, Jakarta: Rajawali Pers. 2011 Islamic-based economic system. So, if
Malaysia is one of the Islamic countries Huda, Nurul, dkk., Keuangan Publik Islami: that has similar economic structure with Pendekatan Teoritis dan Sejarah, Jakarta: Kencana. 2012 Indonesia, it should be a model of state financial management conducted by Mahamod, Siti Mashitoh, “Pembentukan Dana Wakaf Menurut Perspektif Syariah Dan Malaysia, the instrument of zakat as a tax Undang-Undang Serta Aplikasinya Di deduction can also be applied in Indonesia. Malaysia”, Jurnal Syariah, Vol. 15, No. 2. 2007
REFERENCES M. Sadeq, Abul Hasan, “Waqf, Perpetual Charity and Poverty Alleviation”, International Journal of Social Al-Quran, Syaamil, Al-Quran, Tajwid, dan Economics, Vol. 29, No.1/ 2. 2002 Terjemahannya: Dilengkapi dengan Asbabun Nuzul dan Hadist Shahih, Bandung: PT Sygma. 2010 Rahman, Muh. Fadhail, “Sumber-Sumber Pendapatan dan Pengeluaran Negara Islam”, Al-Iqtishad, Vol. 5 No. 2. Juli Ab Rahman, Asmak, “Peranan Wakaf 2013, dalam Pembangunan Ekonomi Umat Islam dan Aplikasinya di Malaysia”, Shariah Jurnal, Vol. 17, No. 1. 2009 Simanjuntak, Timbul Hamonangan, “Penerimaan Perpajakan di Negara Ahmad, Sanep, dkk., “Penswastaan Asean”, Jurnal Ekonomi dan Studi Institusi Zakat dan Kesannya Pembangunan, Vol. 4, No. 2. November Terhadap Pembayaran Secara 2012 Formal di Malaysia”, IJMS, No. 13 (2). 2006 Supangat, “Kebijakan Fiskal Negara Indonesia dalam Perspektif Ekonomi Islam”, Faisal, “Sejarah Pengelolaan Zakat di Conomica, Vol. 04, Ed. 2. November Dunia Muslim dan Indonesia 2013 (Pendekatan Teori Investigasi- Sejarah Charles Peirce dan Defisit Suprayitno, Eko, dkk., “Zakat Sebagai Kebenaran Lieven Boeve)”, Analisis, Pengurang Pajak dan Pengaruhnya Vol. XI, No. 2. 2011 Terhadap Penerimaan Pajak di Semenanjuk Malaysia”, Inferensi, Vol. 7, Fauza, Nilna, “Rekontruksi Pengelolaan No. 1. 2013 Wakat: Belajar Pengelolaan Wakaf dari Bangladesh dan Malaysia”, Wahid, Hairunnizam, dkk., “Pengagihan Zakat Universum, Vol. 9, No. 2. Juli 2015, Oleh Institusi Zakat di Malaysia: Mengapa Masyarakat Islam Tidak Berpuas Hati?”, Jurnal Syariah, Vol. 17, No. 1. 2009
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