The Harnessing Trade Zakat for Poverty Reducing

Insight from Aceh’s East Coast

Abstract

Introduction/Main Objectives: It's ironic that poverty continues to rule the Islamic world. This is due to a variety of causes, including the fact that zakat, a potential source of income, is not optimally collected and effectively and equally managed. As a result, the function and goal of zakat in alleviating poverty cannot be accomplished. This study was carried out to examine the viability and implementation of trade zakat in Langsa City precisely on Pasar Baru st. Blocks B and C. Research Methods: This study employs a descriptive qualitative research design, which depicts the current condition of the research object using primary and secondary data acquired by observation, interview, and documentation methods. The informants in this study were two people from the amil, while the respondents were six traders on Pasar Baru st. Block B and C, Langsa City. Finding/Results: The study reveals that the potential for trade zakat in Pasar Baru st. Block B and C, Langsa City, has significantly increased, as evidenced by the traders' substantial awareness of trade zakat. However, the proper implementation of trade zakat remains incomplete. Many traders continue to distribute their zakat funds directly to their neighbors without involving Baitul Mal, primarily due to their lack of understanding of the importance of channeling zakat through the proper institution.  Implication: Consequently, the distribution process is expedited, but only a limited number of mustahik benefit from the funds. So that the impact on poverty alleviation will be insignificant. To address this issue, Baitul Mal is considering measures such as promoting through print and social media and conducting educational campaigns to better inform future muzakkis.