ZAKAT

Introduction

The word ‘Zakat’ literally means ‘growth’ or ‘increase’ or ‘nourishment’. Thus Zakat means ‘to
grow’, ‘to increase’ or ‘to purify’. Zakat helps the purification of human soul from miserliness,
selfishness, lust and greed of wealth and thus it paves the way for its growth and development. The
spending of wealth for the sake of Allah purifies the heart of man from the love of materialism and
instead inculcates in his heart love of God and love of humanity. Apart from its moral and spiritual
effects, Zakat has also many economic and social repercussions. It establishes brotherhood,
friendship and fraternity among the rich and the poor. Zakat prevents the concentration of wealth in
few hands and ensures its distribution in the hands of many. It also discourages hoarding and brings
about the circulation of capital into the national economy. In this way, Zakat ensures the growth of
national wealth and promotes national integration and social bonds.
Zakat is not only a tax but also an act of worship. It is one of the fundamental articles of faith for a
Muslim. Zakat is one of the five columns or pillars upon which the whole edifice of Islam is built.
Next to Salat (prayer), Zakat is the most important of the religious obligations enjoined on the
followers of Islam.
The importance of Zakat in Islam can be judged from this very fact that the Qur’an, the revealed
book of Islam, mentions Zakat for more than eighty times, while for twenty seven times
commandments regarding Zakat are found in close connection with obligatory Salat (prayer). M.A.
Mannan in his book “Islamic Economics: Theory and Practice”, remarks: “Salat (prayer) rouses the
feeling of equality and brotherhood between the rich and the poor, the high and the low, and Zakat
puts the feeling of brotherhood on a firm footing by making the rich and the capitalists responsible
for the maintenance of the poor and the needy.
The spiritual and moral values of Islam inculcated by Salat would lose their significance if men did
nothing to eradicate poverty for bringing about social justice.” Another eminent scholar writes:
“The spiritual discipline inculcated by prayer would lose its practical significance if men did
nothing to organize themselves to root out poverty and social injustice. The brotherhood of man is
not realized only by bowing together of the ruler and the subject, the lord and the peasant, the
factory-owner and the wage-earner shoulder to shoulder before one God, but is established on a
firm foundation even outside a mosque where the king and the lord and the factory-owner are made
jointly responsible for the elementary necessities of life of the subject and the peasant and the wage-
earner.”

The prophet of Islam (PBUH) instructed Mu’az, when the latter was sent to Yemen as Governor:
“Teach them that Allah has made obligatory over them Zakat which will be taken from the rich and
will be given to the poor among them.” This Hadith of Prophet (PBUH) explains the nature and purpose of
Zakat.

The rules and regulations of Zakat as laid down by the Muslim jurists in the light of the Qur’an and
the Sunnah are:
1. Zakat is imposed on the wealth of a person who is (a) Muslim (b) adult (c) sane (d) free and
(e) solvent. However, Zakat is also payable on the wealth of a minor as well as on the wealth of an
insane person but it is paid by the guardian. As it is a religious duty, it is obligatory on a Muslim
only and no non-Muslim is obliged to pay it. A slave and insolvent debtor is also not liable to its
payment.
2. Nisab of Zakat or the minimum limit of wealth which attracts liability of Zakat has also been
fixed at various levels in case of different categories of wealth. Nisab in case of gold is 20 Misqal or
7.5 tolas or 3 ounces. In case of silver, it is 200 Dirhams or 52.5 tolas or 21 ounces. In case of
camels, it is 5 in number. In case of cows, it is 30 and in case of goats and sheep, it is 40 in number.
Articles of trade and general merchandise qualify for Zakat when their value is equal to Nisab of
silver.
3. Rate of Zakat in case of gold and silver is 2.5%, in case of cattle wealth it varies between 1%
to 2.5%, while in case of articles of trade it has been fixed at 2.5%. Assets of modern times like
shares and stocks, cash and coins, deposits in banks, investments and debentures, etc. are also
charged to Zakat at the rate of 2.5%.
4. No Zakat is due on property before a year elapses. Ibn Umar reported that the Messenger of
Allah said: “Whoever acquires wealth, there is no Zakat therein till a year passed over it” (Tirmizi).
For the purpose of Zakat, the Muslim financial year begins with the month of Ramadhan. Advance
payment of Zakat is also permitted like the advance payment of Income Tax these days.
5. Properties which were subjected to Zakat in the early Islamic State included gold and silver,
animal wealth, articles of trade, etc. During the reign of Umar, horses were also subjected to Zakat
when they were bred and traded on a larger scale.Modern jurists and scholars of Islam are almost
unanimous that these assets are chargeable to Zakat in an Islamic State.
6. The following properties and assets have been exempted from the levy of Zakat:
 Personal effects like clothes, articles or furniture, household goods except ornaments and
utensils of gold and silver.
 Horses and asses for conveyance or Jihad.
 Arms or weapons for personal use.
 Cattle employed in farming or transportation of goods.
 Tools of a professional for his personal use.
 Residential house.
 Slaves and servants.
 Books.
 Food for the owner and his family.
 Agricultural land and factory building and machinery etc.
7. Zakat cannot be lawfully paid to members of the tribe of Hashim who was the great grand-
father of the prophet of Islam. It cannot be paid to Non-Muslims. Servants and slaves are also not
eligible for Zakat when it is paid to them in consideration of their services. A person possessing
Nisab property is also not eligible for it. One’s ascendants and descendants are also not eligible for
Zakat. Wife and husband cannot pay Zakat to each other. Similarly, according to some jurists Zakat
cannot be spent on the construction of a mosque.
8. Zakat is levied only on what remains after satisfaction of one’s basic necessities. Wealth for
Zakat is computed after deducting the amount of debt which the assessee owes to others. All the
wealth and assets owned by an assessee are not clubbed together for the purpose of Zakat because
every category of wealth has its own Nisab and its own rate. In case of joint ownership of wealth,
the share of each partner is considered separately. Zakat can be collected or paid in kind or cash,
whichever method is convenient. Zakat on visible or apparent wealth is assessed and collected by
the Islamic State but in case of invisible or non-apparent assests, Zakat can be assessed and
determined by the Zakat payer himself. However, in this case also Zakat should be paid to the State.
9. Zakat or Sadaqa levied on the agricultural produce is called Ushr. It is levied at the rate of
10% of the produce in case of rain-irrigated land and at 5% in case of land irrigated by artificial
means of irrigation such as wells. Nisab or minimum amount of produce which attracts Ushr is 5
vasqa or 948 kg.

SOCIAL IMPACTS
1. Zakat As An Economic And Financial Ibadat
A man said to the Prophet: “Tell me of such a deed as will make me enter Paradise." The
people said, "What is the matter with him? What is the matter with him?" The Prophet said,
"He has something to ask. (What he needs greatly) The Prophet (‫ )ﷺ‬said: (In order to enter
Paradise) you should worship Allah and do not ascribe any partners to Him, offer prayer
perfectly, pay the Zakat and keep good relations with your Kith and kin." (See Hadith No. 12,
Vol 8)

2. Zakat Starts By Giving One’s Own Wealth To Other In Society

“Indeed, those who believe and do righteous deeds and establish prayer and give zakah will have
their reward with their Lord, and there will be no fear concerning them, nor will they grieve.” (Al-
Baqarah) Zakat begins by giving one’s own wealth to the society and expecting nothing but Allah’s
mercy in return. Just as salat, zakat has been imposed on all the Muslims who have wealth worth
more than 7.5 Tola gold.

3. Elimination Of Social Classes

Indeed with the addition o Zakat by Allah in the Islamic worships, Allah has eliminated the social
class which existed in the era of ignorance. This has made Muslims to be more thoughtful of their
wealth as they would be question for it on the Day of Judgment. The Muslims who give zakat
yearly are the ones who are in God’s sight the virtuous as just like salat, hajj, or fasting, zakat is
equally important in the Islamic creed.
 4. It Leads To The Spirit Of Sacrifice In Society
A person who works day and night and earns for his family has to give zakat if it’s due on him. He
has to follow the commandment of God if he wishes his money to remain pure and halal. This act
teaches man the spirit of sacrifice in the society. Man sacrifices his hard earned money on the
society just to please Allah. This enhances his faith as well as multiplies his rewards in the
hereafter.

5. It Increases Mutual Care And Support

Zakat is made compulsory for every Muslim who earns more than a certain amount prescribed by
Allah for zakat. By giving zakat to the ones in need makes the man more caring and it develops
mutual care and support in the society. A time came during the reign of the Ottoman Empire when a
bag was left hanging on a tree for people to collect it, but for three months the bag remained
hanging on the tree.

6. It Promotes Love And Respect For Others

When a person is in need of money and is having a hard time earning it, or can’t earn due to some
unforeseen reasons, then a person who helps him by donating some money from his wealth earns
the love and respect of the needy. This increases the honor of the person in the eyes of the needy, as
well as God. Therefore, giving money to the one eligible of zakat is seen to increase the love and
respect in a society.

7. It Eliminates Hate And Jealousy Between Rich And Poor

When the rich gives zakat to the poor, the poor doesn’t envy the rich as both the poor and the rich
know that the money which is being given by the rich, and received by the poor, is Allah’s to begin
with. Both of them know that Allah gives to whom He pleases. Some are being tested by
endowment of money by Allah, and some by withholding of it by Allah. In both the cases, man is
being test. Therefore, giving zakat is only a injuction of Allah and it erases jealousy in a society.

8. Circulation Of Wealth In Market And Society

From an economist point of view, the true purpose of zakat is that it enhances the circulation of
wealth in the market and society. The money which circulates throughout the market and the society
decreases poverty. This has been proven in the history as a time came in the Ottoman Empire when
there was hung a bag on a tree for three months without anyone taking anything from it. This shows
how effective it is.

9. It Increases Purchasing Power Of Poor

When the poor are given zakat, they get their daily requirements fulfilled and hence even store some
money for using it later. This increases the purchasing power of the poor. It gives them an
opportunity to buy stuff that is expensive and even live a life which they think they could never
have.
 10.It Strengthens National Economy And Exchange Of Capital
Zakat is a great contributor to strengthening the national economy and exchange of the capital in a
state or society. It circulates the wealth from the rich to the poor and hence increases the living
standard, which shows that it is strengthening the economy and the exchange capital as the rates of
the materials get low and affordable for every citizen.

11.It Leads To Eliminate The Poverty And Crime

Another thing it does is that it eliminates the poverty in a society as the money earned by the rich is
given to the poor. By having money and having the basic needs fulfilled, the poor does not opt for
courses which would be called a crime in the society. If the poor is being treated well and given
money when due, he will never resort to crime and hooliganism.

12.It Helps Underprivileged People And Socially Disable People In The Society
Obviously people in the society who are underprivileged and socially disabled have a difficulty in
finding a job that suite to their physical capacity. Zakat makes them an eligible as they are given
these saddening privileges by the God Almighty as a test to their resolution. These people are
equally eligible to zakat as is anyone else ordained by Allah in the Quran.

13. It Eliminates The Unfair Means Of Earning

Besides doing a crime like theft or robbery, people resort to unfair means of earning if they are not
given the due zakat. A poor person will always end up eating the rights of another if he is left with
no other option than to do corruption. He will not care what the world thinks of him, he will do
whatever he can in his power to earn a living for him and his Family.

14.It Can Eradicate Immoral Practices And Prostitution From Society

Even today in the most civilized countries where the rich elite class is ruling at the mercy of the
poor, the women who can’t find a suitable job end up doing prostitution and other immoral practices
such as striptease and etc. These practices depict the class distinction made by Karl Marx in his
book “A Manifest Destiny”. If the same women who ended up doing such horrendous act was
given her due share of zakat, maybe she would’ve kept her dignity and pride and would’ve found
something more honourable to do with the money she had.

15.It Helps In Combating Terrorism

Studies show that those who lead a life of a destitute are more prone on joining extremist
organizations who offer them money and women to please them. Such people end up deciding to go
towards what they think could give them a better life. Of course many of them end up killing
themselves through suicide. But, overall it can be said that if the poor who gets appealed by the
leisure connoted by the extremists, and not paid their due zakat, they will end up in the hands of the
radicals and the extremists who use religion as a tool for their personal interests.
 16.A Support For Destitute
What zakat does is that it becomes a support for the poor and the destitute. The rich finds a way
through the poor to give his mandatory zakat while the poor gets a support through the money
distributed by the rich. This process decreases the gap between the rich and the poor as well.

17. Establishing A System Of Do Good And Have Good

As mentioned before, the system of zakat brings peace in a society where as a society which doesn’t
practice zakat is the home for crimes and other heinous acts. This propels people to do all sort of
bad things in the society to seek a living. Zakat establishes a system of do good, have good. A
person who does good to others will get good in return, as he gives money to the poor, Allah will do
good for him as well.

18.Combating Unemployment Through Model System Of Zakat

Instead of allocating money to hold seminars or presentations to spread the word of zakat, one can
accumulate the zakat money to make a firm or an organization that could help the unemployed be
employed. This system would help the poor get a job and to not spend his entire life begging and
hoping for zakat. This would increase employment and as a result, poverty would decrease and the
living standard of the people will also increase.

MORAL IMPACTS OF ZAKAT

1. Generosity
Allah's Messenger said, "Whoever is made wealthy by Allah and does not pay the Zakat of his
wealth, then on the Day of Resurrection his wealth will be made like a baldheaded poisonous male
snake with two black spots over the eyes. The snake will encircle his neck and bite his cheeks and
say, 'I am your wealth, I am your treasure.'” The implications to not giving zakat itself are
horrendous. Therefore, a person who gives zakat, not only does it makes him avoid the punishment
of Allah, it also makes him more generous.

2. Decreasing Lust For Wealth

A person who makes a habit of giving money to the poor becomes more open-hearted and is more
thoughtful of the poor. His desire for wealth starts to decreases and he starts to spend more in the
name of Allah. He knows that everything he has is bestowed upon him by the Almighty Allah.
Therefore, he takes each and every penny of his to be Allah’s and only considers giving the needy
and the poor as if it was theirs to begin with.

3. It Purifies The Heart

Morally, the effect of zakat is quite vivid as it purifies a heart and makes the person more merciful
and thought of the poor. He knows that whatever he has is merely for a certain amount of time
before he will finally meet his Maker. This makes him more generous and even prompts him to
spend more and more in the name of Allah. He knows that his eternal aim is to please his Lord and
that by spending in His name would bring him closer to his Creator.

4. Humility
A person who consistently spends in the way of Allah automatically becomes more humble and
more modest. He starts living a simple and austere life. He continous doing everything to please his
God and whatever he earns, he spends it in the way of God. This humility makes him a much pious
person and more near to his Creator. This act of alms-giving makes him closer to God.

5. Humanitarian Spirit And Mutual Health

A person who pays zakat knows that whatever he has, even his health, is in the hands of Allah. He
cares for the people and spends his wealth for the betterment of the humanity and mutual health. A
great example of such can be seen in the late philanthropist namely Abdul Sattar Edhi of Pakistan as
to how he served his life for the welfare and mutual health of the people.

6. Patience And Tolerance

Obviously, the most important factor that zakat promotes is perhaps patience and tolerance. When a
person pays zakat to the needy or the poor, he can tell from their faces how much it means to them.
The person who earns so much yet spends so little, and when spends and sees the reaction of the
poor makes him wonder as to why he didn’t spend as much as he is spending now, than what he was
spending before. This makes him more thankful and patient and tolerant for whatever he has. He
thinks of the blessing and favours bestowed by God unto him.

7. Moral Uplift
At the last, but not the least, a person who spends in the way of Allah knows the value of himself.
He knows how God has given him so much and yet whatever he does, cannot be thought as doing
enough. He knows that everything he has is God’s to begin with. This increases his moral
inclination towards the society and the poor. He starts becoming more morally upward. This gives
him a new vibe of moral uplift.

SPIRITUAL IMPACTS OF ZAKAT

1. Satisfaction By Helping Others
A person who pays zakat gets an inside satisfaction like no other. He knows that he’s fulfilling the
obligations of Islam and hence does everything to please his Maker. His heart feels soothing and he
feels satiated by his act. The reaction of the ones who receive the zakat itself gives a heart
impounding feeling.
 2. Zakat Removes Love Of Materialism Or Wealth
Zakat makes a person more generous and makes him think of the hereafter. He does not think of
hoarding the money and continuously spends it in the way of God. This makes him non-
materialistic and removes the love of wealth from his heart.

3. Closeness To ALLAH
When a person is following the commandments of Allah, he becomes close to Allah even more than
anyone else who disobeys Him. He knows that whatever he spends, God will double the reward for
it. Hence, by having such faith in God makes the person closer to his Creator.

4. Mental Satisfaction
There is no satisfaction in this world than to obeying the commandments of Allah. A person who
believes in Allah and knows that he has to pay zakat gets a mental relief like no other as he knows
that his actions will please God. God in return has said that he would double the reward and for sure
He will, as He never lies.

5. Purification Of Wealth And Self

Another thing that zakat does is that it purifies the wealth and the person who gives it. This makes
the person more pious and piety, and his wealth, more halal and good for him. The purification of
wealth is only done through zakat.

6. Scarificing The Beloved Things For The Cause Of ALLAH

Spiritually, it teaches a man to sacrifice. He sacrifices his hard earned halal money in the name of
Allah, just to please Allah. Of course pleasing Allah today will in the long run, become the reason
for him to enter the heavens.

7. Zakat Increases One Wealth

The Prophet said: “Zakat increases ones wealth, it does not decrease it.” If we call ourselves a true
Muslim, we ought to believe every word what the Prophet said. Indeed, the zakat is a virtuous act
which enhances the wealth instead of it decreasing. Allah said to spend in His way and He will
double it, triple it, and so on.

8. Zakat Leads To Taqwa

Zakat enhances a Muslim’s taqwa. Every good act done in the name of Allah enhances the taqwa of
the Muslim, if the act done is replication of the ways of the Prophet. Therefore, spending money in
Allah’s name increases taqwa.
 9. Abstaining From Evils Deeds
A person who is spending his hard earned money in the name of Allah would never want his good
deeds to be obsolete. He would do his utmost best to keep them intact as long as he can. Therefore,
he would try to do more good and spend his time careful of not committing any sinful act that
would abolish his good deeds.

10.Consistency On Good Deeds

One good act leads to another. The same can be said when a person spends his money in Allah’s
name and purifies his soul and his money. The act of goodness propels a person to act in a humane
and just manner contrarily to the acts done by wrongful desires.