Economic rationale for the state collection of zakah

Zafar Iqbal

MPRA Paper from University Library of Munich, Germany

Abstract: This article advances arguments in favour of the state collection of zakah by elucidating the public good character of the rationale for redistribution. It then explores the potential of zakah as poor due in comparison to that component of the state income transfers in the U.S. that are targeted specifically at the poor. The data for 1990 exhibit that means-tested payments are around 2.5% of the US national income that equals to the lower bound of the zakah rate. One can safely infer that the potential of zakah is not that limited as some critics have been suggesting in the past.

Keywords: Redistribution; Zakah; Islam (search for similar items in EconPapers)
JEL-codes: D64 H40 I38 Z12 (search for similar items in EconPapers)
Date: 2000-01-01
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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