[CLIPING] Potential Zakat from ASN and TNI-Polri

By: Imron Mawardi

The low national zakat receipts are now starting to become a concern for the government. President Joko Widodo will encourage zakat collection by issuing a Presidential Decree on zakat deductions for ASN, TNI and Polri. In fact, it is also possible for BUMN employees. Of course, only for Muslims who have fulfilled the requirements as people who are obliged to pay zakat (muzakki).

The requirement for muzakki is an income equivalent to 85 grams of gold a year. With a gold price of IDR 1 million per gram, zakat will be deducted from civil servants whose income is more than IDR 85 million a year or more than IDR 7 million per month. The zakat deduction is 2.5%.

The good news was conveyed by the Chairman of Baznas Noor Achmad who received confirmation from the president at the end of February. The issuance of this Presidential Decree will be an important momentum for zakat. An Islamic financial institution that is very important for the distribution of wealth and achieving the welfare of the people.

Many are worried about the presence of the Presidential Decree on zakat cuts for civil servants, TNI and Polri. This presidential decree is considered as state interference in religious affairs. Moreover, in the last five years, many regional regulations related to religion were canceled by the Minister of Home Affairs. Apart from that, many parties are concerned about the potential for corruption in zakat funds when government institutions participate in managing zakat. Zakat management is also ineffective because government institutions are considered unprofessional.

Government interference with the implementation of religion is normal. Because, with the principles of Pancasila, the state should participate in upholding religion for its adherents. Withholding zakat for civil servants, TNI and Polri is no different from the application of Islamic law regarding marriage and inheritance. There is also a religious court which not only handles marriage, divorce and inheritance, but also sharia banking disputes.

Likewise, there is no need to worry about the potential for corruption and ineffective distribution of zakat. This can be avoided, because the government does not directly manage zakat funds, even though they are quoted through government agencies. Because, according to the Zakat Law, the person who has the right to manage zakat is Baznas. In collecting, distributing and empowering zakat, Baznas is assisted by the Amil Zakat Institute (LAZ).

In this way, government agencies that deduct zakat from civil servants, TNI and Polri have no right to manage zakat. This agency can only establish a Zakat Collection Unit (UPZ) that is authorized by Baznas. The UPZ receives the zakat, then hands it over to Baznas or LAZ.

However, UPZ can apply to participate in distributing zakat by preparing a program that must be approved by Baznas. The program should reach stakeholders in the agencies where zakat is deducted. This is so that zakat can be felt by mustahiq who are close to the agency.

Apart from these methods, in a more macro framework, zakat can be synergized with the APBN. History records that zakat is an important instrument in development in Islamic government. Even though the use of zakat is specific, namely 8 groups as emphasized in At-Taubah verse 60, many government programs can use zakat funds. These include programs for community empowerment, poverty alleviation, education, health and construction of religious facilities.

In this way, zakat funds can be integrated with the APBN in financing development. This synergy between the government and zakat institutions will benefit both parties. For Baznas and LAZ, the synergy of this program will make zakat distribution more effective. Zakat institutions will share with the government in empowering and alleviating poverty. This way, they can focus on certain objects or areas. Likewise, the government can focus empowerment and poverty alleviation funds on areas that are not handled by zakat institutions.

This can be realized if the government truly positions zakat as part of the government by increasing literacy, encouraging Muslims to pay zakat, and providing incentives for zakat payers. If the huge potential of zakat can be maximized, then the government will be greatly helped in financing development, especially those related to poverty alleviation, education and health in accordance with the provisions of mustahiq zakat.

As a consequence of cutting zakat for civil servants, TNI and Polri, the government should make zakat a direct tax deduction (tax deductible). So far, the government has only used zakat as a deduction for indirect taxes (deductible taxable income). Zakat is a direct tax deduction, there is no need to worry that it will reduce tax revenues. Referring to Malaysia, when zakat becomes a direct tax deduction, zakat and tax revenues both increase sharply.

What is the potential for zakat from civil servants, TNI and Polri? Which is clearly quite big. And what is important is the multiplier. Based on data from BPS, as of December 2020, the number of civil servants was 4,168,000. Civil servants whose zakat can be deducted are those whose income has reached one nishab, which is equivalent to 85 grams of gold a year. With a gold price of IDR 1 million per gram, the nishab is equivalent to IDR 85 million or IDR 7,000,000 per month.

Assume that those whose income is that much are class IV and class III civil servants. Group IV reached 986,000 and group III 2,430,000. Total 3,416,000. If zakat is 2.5 percent of IDR 7 million, the amount is IDR 175,000 per month or IDR 2.1 million a year. With that calculation, zakat for civil servants in categories III and IV reaches IDR 7.17 trillion. This amount reaches 70 percent of the 2020 Baznas and LAZ zakat proceeds, which reached more than IDR 10 trillion.

The potential for zakat is actually much greater than that. Beik's study (2012) shows that the potential for zakat in Indonesia reached 3.4 percent of GDP, reaching IDR 217 trillion in 2012. With 2018 GDP of IDR 14,837 trillion (BPS, 2019), Indonesia's potential zakat a year reached IDR 504 trillion. This of course reached 25.96% of government revenue in 2018 which reached IDR 1,942.3 trillion.

In fact, the ZIS paid by Muslims during 2018 is definitely far from that figure. This is because various studies such as Saidi (2003) and Pirac (2007) state that only 6% of Indonesian muzakki pay zakat to BAZ/LAZ. As many as 94% do not pay through official zakat institutions. As many as 66% pay through amil near home such as mosques, Islamic boarding schools, or orphanages, and 28% pay directly to zakat (mustahiq) recipients, especially the poor. With these assumptions, it is very likely that the annual ZIS will reach 16.67 times the LAZ/BAS acquisition or IDR 167 trillion in 2020. Wallahu a'lam.

This article was first published in DI's Way Daily 31/03/2021, with the title "Zakat Potential from ASN and TNI-Polri" Republished here with the author's permission for educational and da'wah purposes.