KUALA LUMPUR, Aug 4 (Bernama) -- Lembaga Tabung Haji (TH) has reaffirmed that zakat paid on behalf of its depositors is valid and Shariah-compliant, dismissing doubts over the institution's zakat payment practices.
In a statement today, TH said its Shariah Advisory Committee (JPS), at a meeting on Sept 2, 2020, was of the view that zakat payments made on behalf of depositors for the period prior to the introduction of the wakalah concept in 2019 are valid and comply with Shariah principles.
TH said the National Fatwa Committee for Islamic Religious Affairs Malaysia ruled on May 3, 1979, that while the institution is not required to pay zakat on itself, it is responsible for settling zakat on behalf of its depositors.
"TH has consistently fulfilled its obligation to pay zakat on behalf of depositors in accordance with this ruling.
"Regarding zakat payments during the period when the Wadiah Yad Dhamanah contract was in use (2016-2019), the zakat paid was in fact business zakat (via khultah) on behalf of depositors for the pool of depositors' funds used in business operations," it said.
TH said this was because the institution has no shareholders and all assets used in its business operations are derived entirely from depositors' funds.
It added that all zakat paid has always been on behalf of depositors. As such, depositors do not need to pay zakat again on the same funds, as this would amount to double zakat, which is inconsistent with Shariah principles.
On the recommendation by the TH Royal Commission of Inquiry (RCI) that its zakat practices be referred to the Muzakarah Committee of the National Council for Islamic Religious Affairs Malaysia (MKI), TH said the matter was presented to and endorsed by the committee in June 2024.
"The committee's view was subsequently submitted for the attention of the 267th Meeting of the Conference of Rulers in October 2024.
"TH wishes to inform that the entire operation and governance of its zakat are guided by the Zakat Guidelines approved and monitored by the TH JPS, which comprises Shariah and Islamic finance experts," it added.
-- BERNAMA