ALIGNMENT OF ZAKAT AND SDGS FROM FISCAL AND SHARIA PERSPECTIVES – A CASE STUDY TOWARDS A ZAKAT AND SUSTAINABILITY-BASED TAX REFORM IN QATAR

Abstract

The thesis discusses the suitability of Zakat as a fiscal tool in the hands of the Muslim State to finance the SDGs. It shows that Zakat generally outperforms taxes in applying the principles of good taxation. From a Sharia perspective, the thesis demonstrates that the alignment of the SDGs with the permissible uses of Zakat remains a key challenge. Such an alignment has generally been based on the interlinks with Maqasid Al Sharia and/or some general concepts or principles in Islam. The thesis argues that establishing such an alignment requires a detailed analysis of the targets and activities envisaged under each of the SDGs and a measure of the same against Zakat uses. With this new approach, the thesis demonstrates that the alignment of the SDGs with Zakat is not as clear or strong as portrayed in the literature. As far as the case of Qatar is concerned, the thesis demonstrates that the country has performed relatively well in implementing the SDGs, albeit with certain key areas still requiring improvement, such as the availability of data on the SDG targets and indicators, the level of participation of the private sector in the economy, the investment in renewable energies, etc. The thesis uses this assessment to suggest the activities and sectors that need to be incentivized while designing a response strategy to the recent developments in the international tax rules, including notably the introduction of a global minimum tax. The response strategy proposed in the thesis for the State of Qatar involves an activation of Zakat combined with a reform of the tax system geared towards supporting sustainability and complying with international tax standards. 

Date of Award	2023
Original language	American English
Awarding Institution	HBKU College of Islamic Studies