Agricultural Zakat Accounting in Malaysia
Mohd Shukri Hanapi

Abstract
In Malaysia, crops which fall under the category of staple food are only made compulsory for zakat. The question is, how about other crops that are not included in the category of staple foods such as coconut, oil palm, ruber, pepper, sugar cane, cocoa and other fruits? Are these items obligated for zakat? If in the affirmative, what type of zakat will be imposed to the agricultural entrepreneurs that harvest crops which are not categorized under the staple food item? Will it still be imposed upon them agricultural zakat on their crops? Or will it be more suitable to impose business zakat? How about its accounting? To answer all these questions, this working paper has three main objectives. First, to identify the basis of accounting for agricultural zakat; second, to identify the types of crops where agricultural zakat will be imposed based on the fuqaha’ (jurists) views; and third, to determine the type of zakat imposed on crops that are not categorized as staple food in Malaysia as well as the methods of calculations. This study takes on library research. All relevant and related information are analysed using content analysis. Finally this paper postulates that in Malaysia crops that are not categorized as staple food, zakat has to be imposed upon them. This is based on the wealth approach as most of the crops nowadays are in the form of commercial crops that can derive a lucrative yield. As to the type of zakat imposed, it depends on its 'illah (reason). If its 'illah includes resilience and wealth, then the type of zakat to be imposed is business zakat as it must meet the haul (timeframe) and nisab (minimal value). However for crops where the ‘illah is just solely wealth, the type of zakat to be imposed is agricultural zakat because it must meet the nisab without haul. After all, for agricultural zakat haul is not a prerequisite as compared to business zakat where it is obligatory to calculate and include the haul.

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