Zakat is mandatory on most assets owned by Muslims
Zakat is one of the five pillars of Islam, along with prayer, fasting, pilgrimage (hajj), and belief in Prophet Mohammed. Zakat means “to grow” because it purifies a person’s earnings.
The following passage from the Quran explains the importance of zakat:
Muslims must pay 2.5 percent annual zakat on their total savings, excluding items used for personal or business reasons. According to Islamic Law the religious obligation takes effect after one lunar year passes since depositing money into an account or saving cash physically. Each Muslim calculates his zakat individually by using the guidelines set by Islamic scholars.
Zakat is mandatory on most assets owned by Muslims and some still-held deceased assets. For example, zakat must be paid on savings up to $15,000 for a single or married person who does not have any dependents under his care.
Zakat must be paid $4,500 for each dependent after that first amount is met. Other conditions contribute to a person’s eligibility. If an individual meets these conditions and accumulates the necessary funds, they have until April 15 to pay their annual zakat without penalty. If one fails to meet the deadline, they will have to pay a fine of 20 percent on their new total.
While it’s important to pay zakat, many questions about whether they owe are accurate. For example – study by the Social and Economic Policy Research Foundation of Turkey found that about $15 billion in zakat was not paid among South Africa’s almost 40 million Muslims. The majority of those people studied were unaware of how much zakat they owed and why.
Among those who knew how much they should be paying, 25 percent deliberately chose not to pay because it would go towards mosques or Islamic schools instead of other needs such as food or clothing. Throughout history, rulers have taken advantage of this lack of knowledge and siphoned off huge amounts from wealthier citizens to use for personal projects while leaving poorer citizens with the task of paying for these projects.
Zakat is equitable in that it allows all people, regardless of their income level, to contribute to the common good of society through charity. However, in some countries where zakat is required, many feel unable or choose not to pay because they do not trust the system and believe rulers will use zakat money for themselves. For example, during family succession disputes in Malaysia in 2010, Prime Minister Najib Razak said he had kept $700 million intended for zakat payments under corrupt practices by political elites. If wealthier citizens continue to withhold funds or if government corruption remains unchecked, then this practice will continue to foster a cycle of mistrust between citizens and leaders which could impede economic reform efforts.”
Read More: Annalena Baerbock
Zakat is one of the five pillars of Islam, along with prayer, fasting, pilgrimage (hajj), and belief in Prophet Mohammed. Zakat means “to grow” because it purifies a person’s earnings. The following passage from the Quran explains the importance of zakat: Let them give alms out of what we have provided for them “[2:3].”
Muslims must pay 2.5 percent annual zakat on their savings, excluding items used for personal or business reasons. According to Islamic Law, the religious obligation takes effect after one lunar year passes since depositing money into an account or saving cash physically. Each Muslim calculates zakat individually by using the guidelines set by Islamic scholars.
Zakat is mandatory on most assets owned by Muslims and some still-held deceased assets. For example, zakat must be paid on savings up to $15,000 for a single or married person who does not have any dependents under his care. Zakat must be paid $4,500 for each dependent after that first amount is met. Other conditions contribute to a person’s eligibility. If an individual meets these conditions and accumulates the necessary funds, they have until April 15 to pay their annual zakat without penalty. If one fails to meet the deadline, they will have to pay a fine of 20 percent on their new total.
