Zakat (an Islamic obligatory donation) is the 4th pillar of Islam and every individual is entitled to pay Zakat once every year (according to Islamic calendar) on wealth which should be equal to either 87.48 grams of gold or 612.36 grams of silver which is owned for one year.
In a notification which was issued by Administrator General Zakat, Government fixed Rs. 35,557/- as Nisab of Zakat this year. In Sharia (Islamic Law) Nisab is the minimum amount for a Muslim’s net worth to be obligated to give Zakat.
According to State Bank of Pakistan (SBP), Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having credit balance of over 35,557 rupees on the first of Ramadan.
The imposition is made under the Zakat and Ushr Ordinance 1980. Drawing from the tax slab rate for the fiscal year 2016-17, Rs 1,250 will be cut from each account having Rs. 50,000/-. Saving accounts with Rs. 0.1 million will see a cut worth Rs 2,500.
Muslims are indebted to pay Zakat to less privileged and to the indigent people. There would be certain eyebrows raised from all walks of the life regarding this decision because there are certain people who do not wish Zakat to be deducted from the accounts in a coerced manner. Instead most people like to give Zakat to needy individuals themselves.
Another question could be about the credibility. Will there be any check and balance whether the Government would be paying Zakat to those needy individuals or not. There are certain questions that need to be answered. However, there is some relief for the people too in terms of exempting yourself from this act. It is pertinent to mention that the people who mistrust the Government with the utilization of Zakat funds may use exemption forms.
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