The Role of Zakat and Taxes on Economic Growth

This research aims to analyze the role of zakat and tax imposition through fiscal policy in the economy and their contribution to economic growth and development. It must be done in the active role of the government or State to direct the economy toward the expected objectives. This conceptual and theoretical research can be implemented and grounded in real economic activity through state involvement. The research concludes that zakat and tax imposition play an important role in the economy through fiscal policy, especially regarding the redistribution of income and wealth, and can be used as instruments to help contribute to economic growth and development. Since this research is conceptual and theoretical, further research is certainly needed to quantitatively determine how far the role of zakat and tax imposition can influence and affect economic growth and development. The research results show that both zakat and taxes are vital instruments in fiscal policy for achieving economic growth, reducing poverty, and ensuring equitable distribution of income and wealth. The integration of Islamic economic principles into fiscal policy can lead to a more just and sustainable economic system. However, further empirical research is needed to quantify the impact of these instruments on economic development.