The Impact of Zakat on Poverty and Welfare in West Sumatera

Authors

  • Dian Fitriarni Sari  Department of Economics, IPB University, Bogor, Jawa Barat, Indonesia
  • Irfan Syauqi Beik  Lecture, Departement of Economic, Economic and Management Faculty, Bogor Agriculture University, City, Bogor, Indonesia
  • Wiwiek Rindayanti  Lecture, Departement of Economic, Economic and Management Faculty, Bogor Agriculture University, City, Bogor, Indonesia

DOI:

https://doi.org//10.32628/IJSRSET196447

Keywords:

BAZNAS Welfare Index, Poverty, Zakat

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.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2019-08-30

Issue

Volume 6, Issue 4, July-August-2019

Section

Research Articles

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How to Cite

[1]
Dian Fitriarni Sari, Irfan Syauqi Beik, Wiwiek Rindayanti, " The Impact of Zakat on Poverty and Welfare in West Sumatera, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 6, Issue 4, pp.367-377, July-August-2019. Available at doi : https://doi.org/10.32628/IJSRSET196447