Distribution of the Zakat Burden on Padi Producers in Malaysia
Presented at the Conference on the Economics of Zakah organised by A.M.S.S., 13-14 April, 1979 at Cornell University, Ithaca. Based on the empirical evidence of 4 provinces of Malaysia, the authors conclude that the effective rate of zakah is 8.30% of the gross income of the padi producers. The burden increases to 16% in the case of owner-producers and 20% for tenants if it is calculated on the net income of these classes. The zakdh calculated on the basis of gross output adds to the income inequalities in a real sense. It is suggested, in conclusion, that zakah should be calculated on net income rather than gross income. The Gini co-efficient worked out after zakah is calculated on the net income shows that income inequalities are reduced effectively. A highly useful study. Contains charts and tables. Analytical. Documented.