Kuala lumpur: Lembaga Tabung Haji (TH) has reaffirmed that zakat paid on behalf of its depositors is valid and Shariah-compliant, dismissing doubts over the institution's zakat payment practices.

According to BERNAMA News Agency, TH stated that its Shariah Advisory Committee (JPS), during a meeting on September 2, 2020, concluded that zakat payments made on behalf of depositors for the period before the introduction of the wakalah concept in 2019 are valid and adhere to Shariah principles. The National Fatwa Committee for Islamic Religious Affairs Malaysia had ruled on May 3, 1979, that while TH is not obliged to pay zakat on itself, it is responsible for settling zakat on behalf of its depositors.

TH emphasized its consistent fulfillment of the obligation to pay zakat for depositors, in line with this ruling. During the period when the Wadiah Yad Dhamanah contract was in use (2016-2019), zakat paid was actually business zakat (via khultah) on behalf of depositors for the pool of funds used in business operations. This is due to the absence of shareholders, with all business operation assets stemming from depositors' funds.

TH further clarified that all zakat payments have consistently been on behalf of depositors, implying that they do not need to pay zakat again on the same funds. Paying zakat twice would result in double zakat, conflicting with Shariah principles.

Regarding the recommendation by the TH Royal Commission of Inquiry (RCI) to refer its zakat practices to the Muzakarah Committee of the National Council for Islamic Religious Affairs Malaysia (MKI), TH stated that the matter was presented to and approved by the committee in June 2024. The committee's findings were then submitted for consideration at the 267th Meeting of the Conference of Rulers in October 2024.

TH assured that the operations and governance of its zakat are conducted under the Zakat Guidelines, which are approved and monitored by the TH JPS, comprising experts in Shariah and Islamic finance.