Hadi says zakat system can help avoid 1MDB, other financial scandals

PAS MUKTAMAR | PAS president Abdul Hadi Awang, in his opening speech at the PAS muktamar today, touted the Islamic taxation system which he said will ensure economic justice.

The zakat system, he said, is unlike socialism and communism, which curbs wealth, and does not allow unrestrained wealth, which he said spawned scandals such as the 1MDB financial scandal.

"The concept of zakat in taxation, which is only imposed on those who can afford it, serves as a guide.

"It does not curb wealth such as in socialism and communism, and it is not too lax so as to allow the grabbing of wealth, which is a disease in liberal capitalism that spawned the cancer of breach of trust and cronyism such as 1MDB, Port Klang Free Trade Zone (PKFZ), Perwaja, the forex and Bumiputera Malaysia Finance (BMF) scandals and the like," he said.

Hadi said the concept of an Islamic economy clearly defines what is "halal and haram" (legal and illegal) and encourages profit sharing.

"It also stresses against interest, cheating and corruption, which are becoming a norm in modern economics," he told delegates at the 64th PAS muktamar in Kuala Terengganu today.

Hadi added this also fits into the recent context of Putrajaya re-introducing the Sales and Services Tax (SST) to replace the abolished multi-tiered Goods and Services Tax (GST).

"The problem of people trying to cope with the rising cost of living must be addressed not through the replacement of GST with SST, which is akin to switching from right hand to left to pinch someone.

"Efforts should be made to study a taxation model that is fairer to the people, businesses and government, and not digging the same hole which has proven to be a failure," he said.

This was only instance throughout his speech that Hadi mentioned the multi-billion ringgit 1MDB scandal.

The theme for the muktamar this year is "Islamic leadership". - Mkini