Zakat

Definition of Zakat
“And observe prayer, and pay the poor-rate and bow with those who bow.” (Al-Baqara:
43)
The Arabic word Zakat means purity and cleanliness. The word Zakat is derived from word
“Tazkia”. In religious terminology, Zakat means that a Muslim, who is in possession of certain
amount of wealth or more, is required by his religion to spend 1/40 of it at the end of year on the
eight kinds of people.
Importance of Zakat
Zakat is the third pillar of Islam and it is the backbone of economic system of Islam. The Holy
Quran speaks Charity as next too prayer in the series of worships and says that prayers without
charity are useless.
“Woe to the prayer ones, who are unmindful of their prayers, who make a show of prayers
and withhold the acts of Charity.”
Zakat helps in improvement and betterment of condition of the poor and to put in other words
more clearly Zakat gives economic security to the Muslim community and prevents the
accumulation of wealth in a few hands.
It is the duty of the rich to pay Zakat and right of the poor to receive Zakat. The rich shall
maintain the poor and the needy so that they may not beg, steal or sleep hungry.
Hazrat Umar bin Abdul Aziz used to say
“prayer carries up half way to ALLAH, fasting brings us to the door of His palace and
alms procure us admission.”
The Prophet (sallAllaahu ‘alayhi wa sallam) said:
“Whoever gives away charity the size of a date, which is earned lawfully, since Allah only
accepts the good lawful things, Allah will indeed take it with His right Hand and cause it to
grow for its owner, just as one of you raises up his colt, to the point that the charity will
become like the size of a mountain.” [Reported by Al-Bukhari and Muslim]
Zakat In The Light Of Quran and Hadith
Among the fundamental beliefs of Islam Zakat occupies a great importance and it is the third
pillar of Islam. At several places in the Quran Zakat has been enjoined on Muslims side by side
with Salat
“Be steadfast in prayer and practice regular charity.”
The Holy Quran says:
“….Those who spend their wealth By night and by day, Secretly and openly, Therefore for
them is their reward with their Lord. And there is no fear on them, nor shall they grieve.
(Al-Baqara: 274)
The Holy prophet said about the Zakat that:
“I have been commanded to fight against people till they testify that there is no ALLAH
but Allah, and they establish prayer and pay Zakat and if they do it, then blood and
 property are guaranteed protection on my behalf and their affairs rest with Allah.”
(Muslim)
If any Muslim refused to pay Zakat, an Islamic government was duty bound to punish him. In the
times of Caliph Abu Bakr some of the tribes refused to pay the poor-due. He declared war
against them:
“By Allah I would fight definitely against him who makes a distinction between the prayer
and Zakat.” (Muslim)
The above mentioned quotations from the Quran and the Hadith are sufficient to signify the
position of the poor-due in Islam. They make it abundantly clear that the edifice of Islam cannot
be raised without full regard to the poor-due.
The Eight Kinds of People Who Receive Zakat
Zakat can be paid to deserving individuals or groups who fall into one or more of eight
categories designated by ALLAH in the Quran.
Indeed, [prescribed] charitable offerings are only [to be given] to the poor and the indigent,
and to those who work on [administering] it, and to those whose hearts are to be reconciled,
and to [free] those in bondage, and to the debt-ridden, and for the cause of ALAH, and to
the wayfarer. [This is] an obligation from ALLAH. And ALLAH is all-knowing, all-wise. –
Al-Tawbah, 9:60
The Quran specifies how zakat is to be distributed precisely, but grants Muslims flexibility in its
payment. This guarantees the right of the needful while accommodating changes in how wealth
is stored, how money is best distributed, and how different cultures change over time.
It is noteworthy that ALLAH Himself identified for zakat payers and administrators the eight
categories for zakat disbursement. This determination is not up to the government, scholars, or
even the Prophet himself.
Types of Zakat
Zakat is of two types
 Obligatory
 Recommended
Obligatory Zakat is again of two types
 The Zakat of wealth
 The Zakat of body (Fitra)
The Zakat of wealth is for nine items
 Four food grains (Wheat, barley, dates and dried grapes)
 Three quadrupeds, (Sheep or goats, cows and camels)
 Two types of coins, (gold and silver)
Threshold (Nisab) of Agricultural Zakat
Zakat of food grains becomes obligatory when wheat, barley, dates or resins reach a particular
quantity (Nisāb). The limit is fixed at approximately 847 Kilograms. If the cultivation was
carried out by non-irrigated water, the Zakat payable is 1/10 of the total yield. But if it was
cultivated with irrigated water, the Zakat is 1/20.
Threshold (Nisab) of Livestock Zakat
Zakat on livestock is
1. Five types of Nisābs apply to Sheep/goats
The minimum number of sheep/goats for applicability of Zakat is forty sheep/goats. There is no
Zakat if one has less than forty sheep/goats. As the number of sheep/goats increases, Zakat is
divided in five taxable limits.
For Cows
The minimum number of cows for applicability of Zakat is thirty cows. There is no Zakat if one
has less than thirty cows. As the number of cows’ increases, Zakat is divided in 2 taxable limits.
For Camels
The minimum number of camels for applicability of Zakat is five camels. As long as the number
of camels does not reach five, no Zakat is payable on them. For 5 camels, the Zakat is one sheep.
As the number of camels’ increases, Zakat is divided in 12 taxable limits.
Nisāb (Minimum Taxable Limit) for Gold & Silver
The nisab is the value of 87.48 grams of gold or 612.36 grams of silver.
Zakat of Fitra
At the time of sunset on Eid ul Fitr night, whoever is adult and sane and is neither unconscious,
nor poor, nor the slave of another, he should give, on his own behalf as well as on behalf of all
those who are his dependents, about Three kilos per head of wheat or barley or dates or raisins or
rice or millet etc. It is also sufficient if he pays the price of one of these items in cash.
Imam Ja’far as-Sadiq (a.s.) said, “Zakatul Fitra completes (perfects) the fasts of the month of
Ramadhan.”
Objectives of Zakat/Socio Economic Significance of Zakat
Personal & Individual benefits
Purification of the Soul
Zakat relates to a person’s individual capacity. The alms giver cleanses his heart from greed and
acquires fear of Allah. Allah has said: “He shall be saved from Hell fire who is ALLAH fearing
and who gives riches to others for the purification of the soul.” (Al-Lail: 17-18)
Purification of the Halal money
The first and the most important benefit of zakat is the purification of the halal money. Once
zakat is paid, money becomes pure and in goes under the assurance of ALLAH.
Compensate Sins
It expiates (compensates) for sins. The Messenger (peace and blessings of Allah be upon him)
said: “Charity extinguishes sins as water extinguishes fire.”
Social benefits
Help of the Poor
The secondary objective of the Zakat is the help of the poor. It provides necessities to the poor
Muslims. The Holy Prophet (PBUH) said:
“Verily, Allah has ordained the payment of Zakat on them (Muslim). It will be taken from the
rich and returned to the poor.” (Muslim)
It is true that the primary objective of the Zakat is the purification of the soul but it is equally true
that unless it serves the needs of the poor, its real purpose will remain unattained. This duty can
be done when the Zakat reaches their hands. That is the reason why the Quran has regarded
Zakat as a right of the poor on the affluent class of the society.
Support of Islam
Muslims have been repeatedly exhorted in the Quran to this effect:
“And strive with your wealth and your live in the way of Allah.”
It is admitted on all the hands that the protection and support of religion is not an ordinary
matter. As such expending of personal wealth for this purpose has great importance. Spending
wealth in the name of ALLAH is also considered a form of Jihad.
“Spend your wealth in the cause of Allah and be not cast by your own hands to ruin.” (Al-
Baqara: 195)
Reduction in crime Rate
The zakat has socioeconomic benefits on a very large scale. Imagine if the wealthiest people in
the world were to practice the zakat. Poverty would be eliminated almost overnight, along with
its many associated problems. It is no secret that crime is often inspired by poverty, as people are
simply trying to survive through desperate means. In that sense, the zakat can also help reduce
crime in an indirect way, and it reaffirms the dignity of human beings
Social Harmony
It makes society like a single family, in which those who have the means, show compassion to
those who do not and the rich show empathy to those who are in hardship. Thus a person feels
that he has brothers to whom he must do good as Allah has been good to him. This is practiced
nowadays as “social security”, but zakat is better, because a person is paying it voluntarily as an
obligatory duty and benefiting his brothers thereby
Economic Benefits
Cash/Money flow in Society
Zakat keeps the money flow inside society in balance and constant. The sahib-e nisab pay zakat
which is gotten by poor people hence the money inflow remains same and constant. The money
flow in a Muslim zakat paying society is downward i.e. from top to bottom. In this way what rich
people have they also give a share of it to the poor people and keep them live like humans unlike
the life of the poor we see today
Economy Growth
Since the money inflow remains downward so the society finally reaches at the point to eradicate
poverty, which is dream of modern economic gurus. Demand increases and economy grows
because every person reaches at a point to buy with ease hence business grows. Similarly to meet
the demand suppliers also increase their market supplies hence they get fair chance to increase
their business.
Unemployment
Unemployment erases because progressive economy always needs more and more workers.
Life Standard
Life standard rises since everybody can buy the basic necessities of life without spreading their
hands before others. It eradicates begging.
The system of Zakat in Pakistan
In the Article 31(2)C of the constitution of Pakistan, it is stated that
“(2) The State shall endeavor, as respects the Muslims of Pakistan,-
(c) to secure the proper organization of Zakat, 1[ushr,] Auqaf and mosques”
Zakat Councils
Zakat Councils are responsible for collecting and distributing the Islamic taxes known as Zakat
and Ushr in Pakistan. The Councils are overseen by the Ministry of Religious Affairs. In
Pakistan, the system of compulsory collection and distribution of Zakat and Ushr began in 1980
with an ordinance decreed by General Muhammad Zia-ul-Haq calling for a 2.5% annual
deduction from personal bank accounts on the first day of Ramadan, with the revenue to be used
for poverty relief.
Recommendations to improve Zakat Administration
Improved collection of Zakat
The collection of Zakat needs to be improved in order to make a significant difference. Citizens
of Pakistan should be encouraged to pay Zakat to the Government in order to continue welfare
schemes of the state. At District level, Zakat Councils need to be revived and made efficient by
employing technology. Outreach through media should be done to convince the people that the
best use of their Zakat is to deposit it to the state.
Uses of Zakat
Channel of payments for the poor and the needy
 Zakat funds, under this category, could be spent on Islamic education of the children of
the poor.
 The establishment of at least one Islamic educational school each year in every town with
one meal freely provided to its pupils.
Professional training and rehabilitation for Zakat recipients
 Training of craftsmen and tradesmen in order to enhance their productive efficiency and
skills.
 Supplying of necessary tools to craftsmen.
 Provision of vocational training to some of the handicapped in order to turn them into
productive individual, coupled with the provision for the handicapped.
 Supplying tools for families that can carry out economic and productive activities,
indoors.
Establishment of simple cottage industries
 Production of handmade rugs and carpets on handlooms
 Production of leatherwear
 Other simple products, such as wooden manufactures
Establishment of simple agricultural industries
  Breeding poultry and fishes
 Establishing beehives
 Establishing various kinds of rural and communal cottage industries
Low-cost housing
 Building of low cost economic building blocks at minimum cost
 Giving possession of flat on the basis of rent financing
 Encouraging of benevolent endowments (waqfs) concerning economic housing
Medical treatment and health care
 Establishment of dispensaries in different localities for providing medical treatment to the
poor in all fields of specialization free of charge or against nominal fees
 Whenever possible, volunteer doctors or doctors charging nominal fees should be
employed for these dispensaries.
 The Zakat institution should assume part of the costs of treatment of some individuals,
eligible for Zakat, in some hospitals where a number of beds, carrying the name of the
Zakat in-satiation may be reserved for the in-patients.
Expenditure on those whose hearts are made to incline to truth
In the words of Abu Ya’la, those whose hearts are inclined to truth, Muslims or non-Muslim
could have a share of Zakat under the following four categories of people:
 Those whose hearts are inclined to help the Muslims
 Those whose hearts are inclined to defend the Muslims
 Those who can be persuaded to embrace Islam
 Those who can be persuaded to attract their tribes and clans to Islam

Conclusion