I- Introduction
1. Zakat is part of Muslim States revenue system:
2. It is a personal(individual) and Social(State) responsibility
3. Examples of Muslim states collecting zakat
a. Pakistan, Saudi Arabia, Malaysia, Libya, Sudan
4. Mandatory part of faith: Pillar of Islam
II- Conditions for purity of wealth
1. Money earned through halal means
2. Zakat has been paid on that wealth
III- Literal meaning
1. Purify/ increase/to grow or become mature
2. Zakat increases money with barkah
IV- Contextual meaning
1. Money spent in way of Allah that helps grow and purify a Muslim's wealth
V- The Giver
1. Rate: How much is to be paid?
a. Cash and Equvialents= 2.5% or 40th part
b. Agricultural produce= 2.5-20%
2. Nisaab
a. Those who Sahib-un-Nisaab are liable/eligible to give zakat
3. Nisaab of different items
a. Gold 7.5 tola or equivalent cash
b. 52.5 tola Silver or equivalent cash
c. 5 camels/ 30 cows/40 goats or sheeps
d. 650kg /5 wasq agricultural produce
4. Condition
a. Zakat is due on wealth that is retained in possession for at least one year
b. Contrarily, modern taxation system is based on taxes on all income even those
used for living expenses
VI- Masarif of Zakat (Who may receive)
1. There is no exact order
2. The ayat for Sadaqaat is applied to define masarif of Zakat Verse 9:60
3. It outlined eight categories of people who may receive Sadaqaat
4. In light of surah Tauba verse 60 heads of Zakaat
a. Fuqara/Poor
b. Masakeen/Needy
c. those employed to collect [zakah]
d. Moallafati Quloobuhum/ New converts or non Muslims
e. Fi Riqaabi/Freeing of Slaves
f. Gharimeen/Freeing of Debtors
g. Fi Sabeel Allah/In the cause of Allah
h. Ibn Sabeel/For the wayfarer
VII- Who must dispense
1. The state vs. individual
a. If the state collects zakat then individuals should give to the state
b. If the state doesn't collect then the individual should give to Masarif of zakat
2. Quranic verse on the dispensation of zakat by state
a. "They are˺ those who, if established in the land by Us, would perform the
prayer, pay alms-tax, encourage what is good, and forbid what is evil. And
with Allah rests the outcome of all affairs."(22:41)
b. "...But if they repent, perform prayers, and pay alms-tax, then set them
free..."(9:5)
3. It is a shared obligation as it is the right of locals
a. Prophet PBUH appointed Muaz Bin Jabal RA in Yemen and advised him to
collect Zakat and pay the amount to the locals.
VIII- Hadith on Zakat
1. “The wealth of a person does not decrease by paying Zakat” (Sahih Bukhari)
2. “One who pays Zakat, Allah will make their wealth increase” (Sahih Bukhari)
VIII- Quran on zakat
1. “And establish prayer and give zakat, and whatever good you put forward for
yourselves – you will find it with Allah.” (2:110, Qur'an)
IX- Objectives of Zakat
1. Purification of the soul
2. Ensuring Equity
3. Ensuring dignity
4. Ensuring progress
X- Future of zakat
1. Progressive taxation in the western world
2. Without zakat society would have been inequitable
3. Conception of the Islamic welfare state. Modern Scandinavian States
XI- Benefits of zakat to the giver
1. Individual-purifies wealth
2. Family-ends greed
3. Community-end immoral activities
4. Economy-Fordism and Keynesian economy (business growth)
5. Society-prosperity in society
XIII- Benefits to the receiver
1. Alleviation of Poverty
2. Chance to Uplift oneself
3. Chance to get an education
4. The Dignity of a person is not hurt
XV- Benefits to Society
1. Circulation of wealth
2. Increase in purchasing power
3. Trickle down from rich to poor
XVl- Conclusion
1. 44% Wealth limited to 1%
2. 800 million people live in poverty worldwide
