slot 8 special presentation zakat ppz

ENHANCING EFFICIENCY IN TAX ADMINISTRATION www.zakat.com.myTALIAN ZAKAT

1 300 88 5757

13TH ASSOCIATION OF TAX AUTHORITIES OF ISLAMIC COUNTRIES (ATAIC)

TECHNICAL CONFERENCE

ESTABLISHING AN EFFECTIVE & EFFICIENT ZAKAT INSTITUTION :

A MALAYSIAN EXPERIENCE IN THE FEDERAL TERRITORIES

Speaker :

HJ. MOHD RAIS HJ. ALIAS

CHIEF EXECUTIVE OFFICER

ZAKAT COLLECTION CENTRE

ISLAMIC RELIGIOUS COUNCIL OF FEDERAL TERRITORIES, MALAYSIA

[email protected]

ORGANIZER

INLAND REVENUE BOARD OF MALAYSIA

ENHANCING EFFICIENCY IN TAX ADMINISTRATION13TH ATAIC ANNUAL TECHNICAL CONFERENCE

TABLE OF CONTENT

∙ Abstract. Introduction. History of Zakat Administration in Malaysia. Modernization in Management of Zakat in Malaysia. Changes and Improvement After Corporatization of Zakat

Management in Malaysia. Federal Territories Religious Council-Success Factors of Zakat Collection

. Marketing Strategies in Zakat Collection

. Federal Territories – Zakat Distribution Programs

. Factors in Establishing an Effective & Efficient Zakat Institution

. Conclusion


ESTABLISHING AN EFFECTIVE & EFFICIENT ZAKAT INSTITUTION :THE MALAYSIAN EXPERINCE IN THE FEDERAL TERRITORIES


DEFINITION OF ZAKAT

Zakat or alm tax can be defined as that portion of a man’s wealth which is

designated for the poor. The term is derived from the Arabic verbal root

meaning ‘to increase’, ‘to purify’ And ‘to bless’. It finds its origin in Allah’s

commands : To take sadaqah (charity) from their property in order to purify and

scantify them.

( At-Taubah : 103)


Islam is the religion of the

Federation; but other religions

may be practised in peace and

harmony in any part of the

Federation.

In every State other than States not having a Ruler the position of the Head of

religion if Islam in his State in the manner and to the extent acknowledged

and declared by the Constitution, all rights, privileges, prerogatives and

powers enjoyed by him as Head of that religion, are unaffected and

unimpaired; but in any acts, observance or ceremonies with respect to which

the Conference of Rulers has agreed that they should extend to the Federation

as a whole each of the other Rulers shall in his capacity of Head of the

religion of Islam authorize the Yang di-pertuan Agong to

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1.)

2.)

(Article Number 3)

ENHANCING EFFICIENCY IN TAX ADMINISTRATION13TH ATAIC ANNUAL TECHNICAL CONFERENCE www.zakat.com.my


www.zakat.com.my

ENHANCING EFFICIENCY IN TAX ADMINISTRATION13TH ATAIC ANNUAL TECHNICAL CONFERENCE www.zakat.com.my


HISTORY OF ZAKAT MANAGEMENT IN MALAYSIA

• Colonial Days – British Occupation (1645-1957).

• Kelantan Zakat Notice – 1907.

• Zakat paid to Ustaz or religious teachers who then

distributes to the 8 asnafs.

• Supervising Body – Council of Religion and Malay

Customs.

• Zakat Collected by Village Imam while the Council

distributes.

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WHY WAS ZAKAT COLLECTION NOT ACHIEVING ITS TRUE POTENTIAL PRIOR 1990’S

• Emphasis was on Zakat Fitr and paddy only.

• No attention given to zakat or mal and businesses.

• Members of public not given detail information or types and zakat calculations.

• Staff requirement could not be carried out.

• No job specification for zakat officials.

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MODENIZATION OF ZAKAT INSTITUTION IN MALAYSIA

• Highest Authority of Islamic Affairs in each state is the Islamic

Council headed by the Sultan/Raja of each states.

• Council is to establish a Syariah Enactment and to ensure the effective implementation of the enactment in the smooth functioning of Islamic practices.

• Basically Zakat Collection & Distribution falls under three jurisdiction of Baitulmal.

• Since 1990’s – New Zakat Offices as an organised and professional body was established.

• Why? To Empower the Zakat institution and to ensure that Zakat

Rules and Regulation are effectively managed.

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CHANGES AFTER CORPORATIZATION

• Enhance Capabilities of State’s Zakat Centres in defining its goals,

function & duties.

• More aggressive, professional and teamwork outlook.

• More committed efforts in developing systems.

• More comfortable & attractive office environment.

• Governments & Community realizing the important role zakat

institution can play.

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MILESTONE OF ZAKAT ADMINISTRATION IN FEDERAL TERRITORIES

1974 1989 2016

Labuan Island was established to be the 2nd

Federal Territory

Putrajaya was established to be the 3rd Federal Territory

Kuala Lumpur was Established to be the 1st Federal Territory

PPZ was established to be a company fully owned by Council to collect zakat on wealth

Federal Territories Religious Council received Clean Certificate without reprimand or its financial statement from National Audit Department 10 years in a row.

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ESTABLISHMENT OF PUSAT PUNGUTAN ZAKAT FEDERAL TERRTORIES RELIGIOUS

COUNCIL

OBJECTIVE :

• Increase of Zakat Collection

• Increase in numbers of Zakat payers

• Improvement in the professional management practice based on current

technology

• Maximize the level customer satisfaction trough services randed

• Create a working environment base on Islamic Value

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ENHANCING EFFICIENCY IN TAX ADMINISTRATION13TH ATAIC ANNUAL TECHNICAL CONFERENCEwww.zakat.com.my

Year

COLLECTION OF ZAKAT

IN FEDERAL TERRITORIES

FOR THE PERIOD OF 1990 - 1995

1 USD = RM4.135

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1990 1991 1992 1993 1994 1995

Million (RM)


RM Million

Year

COLLECTION OF ZAKAT

IN FEDERAL TERRITORIES


282

348

410

492

538565

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015

1 USD = RM4.135


1. ORGANISATIONAL

CHARACTERISTIC

• Corporatisation

• Concept of Amil

• Computerisation System

• Establishment of Service

Centers

SUCCESS

FACTORS

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1. Zakat Talks / Briefing

2. Zakat Estimation & Asses. Services

3. Zakat Operations

&

Campaign

4. Mosque Operation

5. Follow-

Ups

6. Summarize Zakat Report

7. Reminders 8. Greeting Cards9. Individual Group

Consultant

10. Group Zakat Collection

11. Salary Deduction Campaign

12. Appoinments

DIRECT MARKETING

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1. TV

2. Radio

3. Khutbah/

Sermon

4. Presentation5. Group

Assessment & Collection

6. Flyers/

Posters Distribution

7. Exhibition

8. Zakat Seminar 9. Info Day

10. Briefing

11. Talks

INDIRECT MARKETING

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YEAR

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

ZAKAT DISTRIBUTED (RM)

101,548,407

121,224,318

167,507,847

174,986,013

200,541,409

217,246,481

271,967,597

328,394,455

419,225,908

612,747,408

ZAKAT DISTRIBUTION BY FEDERAL TERRITORIES RELIGIOUS COUNCIL

2006 - 2015

1 USD = RM4.135

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BAITULMAL VOCATIONAL INSTITUTE (IKB)

Established as a platform to reduce poverty among

muslim family by providing skill/ vocational training

to the family members

2015 RM2.5 million

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Courses:

a) Tailoring & Dressmaking

b) Art & Design

c) Food Catering

d) Electrical

e) Building & Construction

22 www.zakat.com.my


Provide free training courses, monthly allowance,

accomodation & etc to trainees


Number of trainees since the establishment in 1992:

3,507 trainees

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BAITULMAL

PROFESSIONAL

INSTITUTE (IPB)

Established in 1992

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BAITULMAL PROFESSIONAL

INSTITUTE (IPB)

1992-2015:8,705 graduates

95% graduates were hired after graduation

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BAITULMAL PROFESSIONAL

INSTITUTE (IPB)

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Courses offered:•Diploma in Accountancy

•Diploma in Computer Science•Certified Accounting Technician,

•Bachelor Of Administration•Bachelor Of Accountancy


ISLAMIC KINDERGARTENS

Islamic Kindergartens:Offer pre-school education

to children age 5-6 years old as preparation

for primary education

2015: MAIWP manages 82 kindergartens

with6,750 students

Zakat allocation for year 2015:

RM3.65 million

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MAIWP ISLAMIC SECONDARY SCHOOL (SMA-MAIWP)

Established in 2007 to provide Islamic secondary

education in Federal Territory

Zakat allocation for year 2015:

RM 8.33 million

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SCIENCE TAHFIZ INTEGRATED SECONDARY SCHOOL (SMISTA)

Established in 2011 as a platform to train young generation to become Al-Quran memorizer and will widely spread in various

job market in the future

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Zakat allocation for year 2015:RM2.5 million

SCIENCE TAHFIZ INTEGRATED SECONDARY SCHOOL (SMISTA)

Educational system combines 2 education curriculum:National Curriculum &

Memorize Al-Quran

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Established in 2003

PUSRAWI INTERNATIONAL COLLEGE OF MEDICAL SCIENCE

(PICOMS)

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• Diploma in Nursing Science

• Diploma in Pharmacy

• Diploma in Medical Science

• Diploma in Environment Health

• Diploma in Medical Assistant

• Diploma in Physiotherapy

• Diploma in Occupational Health & Safety

• Diploma in Occupational Therapy

• Diploma in Medical Laboratory Technology

Courses Offered:

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ASNAF EMPOWERMENT PROGRAMMES:

FEDERAL TERRITORIES

33


Education

Development

& Properties

Shelter & Welfare

Programme

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MAIN ACTIVITIES

Zakat Distribution


35

Monthly Financial Aid

Bursary

Education Aid

Entrepreneurship

Taxi Deposit Aid

Build/ Repair House

Emergency

Institute Professional

Baitulmal and PICOM

Non Govermental

Organisations

Ramadan Aid

Medical Aid

Matrimony

Rental Fee (Home)

Disaster's Aid

Baitulmal Scholarships

School Equipment

Tuition

Quran Incentive (Hafiz)

Agriculture

Riqab

Three-Wheeled Motorcycle

Aid for Disable

PICOMS (Education)

Syarie Legal Aid

Fare (Ibnu Sabil)

Al-Gharimin

Mosque Aid

Preparation for

University Entry

F.T. COUNCIL ZAKAT AID’S SCHEMES


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ZAKAT DISTRIBUTION:

ASNAF

Zakat collected then channeled

to MAIWP to be distributed

through various schemes

Poor

Destitute

Amil

Converts

Fisabilillah

Al-Gharimin

Ar-Riqab

Ibnu Sabil

The Schemes includes

basic needs aid,

education, entrepreneurshipand welfare


ZAKAT DISTRIBUTION

Fulfilment of asnaf

basic needs will help them

to have better life and more

focus to generate

household income

Zakat Aid Schemes

for basic needs :

Monthly Financial

Aid Home Rental Fee

Build/ Buy/ Repair

house

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Monthly Financial Aid

Cash distribution between

RM250-RM500 a month

Sept 2015:

RM85.44 mil (23,824 recipients)

Rental Fee (Home)

To help the needy

on home rental payment

Sept 2015:

RM 5.86 mil to

2,940 recipients38

ZAKAT DISTRIBUTION


Sept 2015:

RM1.54 to build and

repair 121 houses

To provide a comfortable

and convenient house as one

of the life basic needs

Build/Buy/ Repair House

ZAKAT DISTRIBUTION

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Channelled to asnaf who are highly motivated

and have potential

Provided in form of capital, equipment and

training

Field of business:

Laundry, car workshop,

food manufacturing,

restaurant, souvenir etc

Capable to free asnaf from poverty cycle(Impact Program)

ZAKAT DISTRIBUTION : ENTREPRENEURSHIP


Assistance is available in

form of capital and equipment

worth up to RM5,000

Distributed to Asnaf

Poor, Underprivileged & Converts

Recipients is obliged to attend

entrepreneurship courses held

in which the costs incurred in the

course is provided by MAIWP

Sept 2015:

RM 2.75 mil

755 entrepreneurs

ZAKAT DISTRIBUTION :

ENTREPRENEURSHIP

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Sept 2015:

RM 2.53 mil

540 taxi drivers

A total of RM5,000 is given

as deposits to purchase taxi

This is to help the asnaf to be

financially independent

for their family’s future


TAXI DEPOSIT AID

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To help those who involves in

agriculture

Sept 2015:

RM 1.2 million

15 recipients


AGRICULTURE

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Important element to free asnaf from poverty

Provides opportunity to asnaf children

to have higher academic

qualification

Aid given from primary school to

high education level

ZAKAT DISTRIBUTION : EDUCATION

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Aid rate per year:

Primary School: RM420- RM540

Secondary School: RM600- RM1,200

Sept 2015:

RM14.4 mil

22,550 students

2015:

RM 5.55 mil

20,170 students

To help providing school equipments

such as school uniform,

shoes, bag, etc


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To help students in higher

education institution

2015

RM12.55 million

5,740 students

Preliminary aid to students

who gets an offer to further

studies at higher level

education institutions

2015:

RM 2.7 million

2,422 students46


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To sponsor excellent student

to further studies in

local or foreign university

2007- 2015:

RM 26.67million spent

to sponsor up to 575 students


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www.zakat.com.my

RM Million

Year

COLLECTION OF ZAKAT IN MALAYSIA


1 USD = RM4.135


FACTORS IN ESTABLISHING AN EFFECTIVE AND EFFICIENT ZAKAT INSTITUTION

• The need to upgrade efficiency

• The need to actively scout for prospective payers.

• The need to enhance Capital Building for asnaf.

• The need to upgrade Management of Human Resource Development.

• The need to update to the best and latest Information Technology

System.

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INTERNAL

• The need to strengthen Internal Control.


FACTORS IN ESTABLISHING AN EFFECTIVE AND EFFICIENT ZAKAT INSTITUTION

• The need to correct the wrong perception on Zakat Fund surplus.

• The need to change the belief on zakat obligation.

• The need to eliminate confusion between zakat obligation versus CSR.

• The need to eliminate Improper Channel for zakat distribution by payer.

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EXTERNAL

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ENHANCING EFFICIENCY IN TAX ADMINISTRATION 51

Thank Youَكِثْيًراجزاك هللاُ خيًرا

Speaker :

HJ. MOHD RAIS HJ. ALIAS

CHIEF EXECUTIVE OFFICER

ZAKAT COLLECTION CENTRE

ISLAMIC RELIGIOUS COUNCIL OF FEDERAL TERRITORIES, MALAYSIA

[email protected]

http://www.maiwp.gov.my/

http://www.zakat.com.my/

slot 8 special presentation zakat ppz

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