Garnering potential of zakat in Uzbekistan: A tax policy proposal

Alam Asadov ,Ikhtiyorjon Turaboev ,Mohd Zakhiri Md Nor

doi:10.24294/jipd.v8i8.5795

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Garnering potential of zakat in Uzbekistan: A tax policy proposal

Alam Asadov

Ikhtiyorjon Turaboev

Mohd Zakhiri Md Nor

Journal of Infrastructure Policy and Development 2024, 8(8), 5795; https://doi.org/10.24294/jipd.v8i8.5795

Submitted：13 Apr 2024

Accepted：21 May 2024

Published：08 Aug 2024

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Abstract

This study analyzes the potential of making Uzbekistan’s taxation system more inclusive by introducing a tax incentive policy related to zakat (obligatory Islamic alms for the wealthy). Additionally, it explores the establishment of relevant institutions to facilitate zakat collection and distribution. The study employs the method of comparative legal research, combined with exploratory research techniques, to examine taxation and zakat systems in different countries. The study’s findings indicate that incorporating zakat incentives, either in the form of tax credits or deductions, into Uzbekistan’s taxation system can enhance the role of zakat institutions in the country’s economy and reduce tax evasion to some extent. Moreover, it proposes a preliminary model of zakat management for Uzbekistan based on conclusions of the comparative study of various countries and analysis of the national legislation. Finally, the research highlights the necessity of a systematic approach to educate the public about zakat obligations, which is crucial for operation of proposed zakat management model and improving compliance. The study provides essential policy recommendations, including the implementation of zakat tax incentives, enhancing public zakat literacy, and ensuring the efficient operation of zakat institutions. By adopting these measures, the government of Uzbekistan can foster a more equitable and effective taxation system, contributing to socioeconomic development and poverty alleviation.

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References

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