MindanaoToday.com | BARMM to roll out Islamic finance with passage of proposed revenue code
CAGAYAN DE ORO CITY – The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) is set to implement Islamic financing once BTA Bill 286, or the proposed Bangsamoro Revenue Code, is enacted.
Designed to enhance the competitiveness of the Bangsamoro region in the market, the proposed revenue code aims to foster Islamic banking and finance, aligning with the region’s predominantly Muslim population.
During a two-day forum of the Bangsamoro Parliament’s Ways and Means Committee, deputy speaker and committee chairperson Paisalin Tago stressed the importance of educating the BARMM populace about Shariah and Islamic finance.
Lawyer Ubaida Pacasem, Member of Parliament and Minister of Finance, Budget, and Management, added that the proposed code seeks to standardize Islamic financial contracts and transactions, ensuring their economic equivalence with conventional counterparts.
He emphasized that its enactment is anticipated to establish a level playing field for Islamic finance products and services, fostering a sustainable Islamic finance industry and an equitable financial system within BARMM.
Stakeholders from Region 10 provided recommendations during the forum to enhance the proposed code. Suggestions included the institutionalization of “hisbah” to manage Shariah in the economy, taxation based on excess wealth, and the incorporation of “zakat” into the revenue code.
Mindanao State University-Marawi Shari’ah Center Director Anwar Radiamoda advocated for implementing the concept of “hisbah,” an Islamic duty that emphasizes managing economic affairs following Islamic principles.
“Islamic finance promotes satisfaction for Muslims and enables them to fulfill their obligations to Allah and society,” he said.
An economic brief released by MFBM highlighted the distinctive features of Islamic finance, emphasizing its prohibition of riba (interest) and its focus on equity, social justice, and economic participation through profit and risk-sharing mechanisms to prevent exploitation and ensure that financial transactions positively impact society.
Lawyer Saniarah Diangca, a legal expert from D’Firm Diangca Law and Taxation Consultancy, also emphasized the necessity of addressing potential overlaps in the functions of the Bureau of Internal Revenue (BIR) and the Bangsamoro Revenue Office (BRO), which is tasked with assessing, collecting, and accounting for all revenues in the region.
Tago meanwhile announced that the committee has scheduled another forum in Davao City next week, featuring resource persons from Region 12. (BTA Parliament/PIA Lanao del Sur)
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