Zakāh (Zakāt) poor dues
By Siddique Katiya September 9, 2011
Zakāh Zakāt or poor dues "almsgiving" is among the five Pillars of Islam. Spending a small percentage of one's properties or possessions for a charitable cause, generally benefiting the poor and needy Muslims individual. It is often compared to the system of tithing and alms, but it serves principally as the welfare contribution to poor and needy Muslims, although others may have a rightful share. It is the duty of an Islamic community not just to pay and collect Zakat but to distribute it fairly as well. Zakat is also paid on Muslims individuals as Sadaqatul Fitr (fast-breaking zakah) once a year.
Zakat is sometimes referred as sadaqah - plural, sadaqat. Generally, the sharing of wealth is called Zakat whereas the sadaqat could be sharing of wealth as well sharing of happiness among God's creation such as saying kind words or smile at someone or take care of animals or environments etc.
Zakat is a worship in Islam as a means of spiritual purification. It is not a burden nor it replaces any taxation system but serves as a socio-financial mechanism in Islam by re-distributing the wealth among poor/needy and other benefits to the society.
Recently many contemporary Islamic scholars have suggested that there is no such thing as taxation in Islam except for the Zakat. Few have also naively suggested to the extent that the amount of taxes paid involuntarily to the authorities may be deducted from the Zakat amount due.
I personally do not agree because the revenue collected by a State per se is not taxes for purpose of the Sharia . It is collected as revenue to pay for the administration, health, Infrastructure, defence, welfare, and education etc. of the State. Alternatively it could be considered as user fees or contribution by its citizen
Besides this problematic ruling will have a far-reaching negative consequence to the Islamic welfare system, in theory, if this ruling to be applied, few middle-class Muslims will be obliged to pay the Zakat under the modern economic system.
There is no disagreement among Muslims about the obligatory nature of Zakat throughout the Islamic history, denying Zakat equals denying the Islamic faith. The Qur'an frequently encourages believers to spend on family, relatives and society as much as possibe, however, Zakat is the minimum amount.
The Muslim jurists differ on many minor details of Zakat, each has his own opinion and arguments. These difference of opinion may include rate, the exemptions, the kinds of wealth that are Zakatable for example, some scholars consider the wealth of children and insane individuals Zakatable, others don't. Some scholars consider all type of agricultural products are Zakatable, others restrict Zakat to specific kinds only. Some consider debts is Zakatable immediately or in the future, others don't.
Similar differences exist for business assets and women's jewellery. Some require certain minimum Nisab (threshold) for Zakatability, some don't. etc. The minor differences also exist about the disbursement of Zakat.
There is a total agreement among Muslim jurists that Zakat is obligatory on the Muslim who has reached puberty, who is sane, who is free, and who owns the minimum assigned amount, Nisab. But disagree on whether it is compulsory on the funds (liquid possessions) of the child and the insane individual. Muslims jurists have agreed that Zakat is obligatory on Muslims but disagree if non-Muslims are obliged
The Qur'an does not provide the definition of Zakatable wealth nor does it provide the required percentages in Zakat. It is left to Sunnah to give, by example or by directives. It must be realized, however, that the Qur'an mentions a few kinds of Zakatable possessions (assets), such as gold and silver, crops and fruits, earnings of trade and other business enterprises and what is drawn from beneath the earth (natural resources).
Muslims fulfil this religious obligation by giving a fixed percentage of their surplus wealth. Zakat has been paired with such a high sense of righteousness that it is often placed on the same level of importance as offering Salat. Muslims see this process also as a way of purifying themselves from their greed and selfishness and also safeguarding future loss. In addition, Zakat purifies the person who receives it because it saves him from the humiliation of begging and prevents him from envying the rich. Because it holds such a high level of importance the "punishment" for not paying when able is very severe declared by the Al-Quran.
There are two categories of charities in Islam - obligatory and voluntary
Obligatory
Voluntary
Possessions (assets) that are Zakatable
Rate and minimums amounts
Most Sunni Muslims pay 2.5% on their zaktable possession held for a full lunar year with minor disagreements
Zakah on agriculture including fruits is 5% or 10% depending on irrigation method used. Differ on minimum quantity (Nisāb) of about 653 or 910 kilograms of crops. Zakat on fruits is at the time of harvest a full lunar year condition does not apply. Differ on many minor detail.
Exempt Properties
Personal items are not Zakatable such as ornaments, jewellery (differ on minor detail), one's dwelling, clothes, household articles including furniture, mount or transportation items, weapons and other things of personal use such as instruments, books, and tools. Generally any assets that are used to earn income are not Zakatable such as factory, machinery, furniture and fixtures, storage container of any kind. etc.. Off-course those who are below the poverty line (Nisab) are not required to pay
Nisab Threshold amounts (poverty line)
Market Value of Gold (85 grams) or Silver (595 grams) or its equivalent .
Who is entitled to receive Zakat
Eight categories of individual may receive the Zakat, Noble Quran (9:60)
As a general rule, Sunni prefer to give to a living Muslim individual who does not possess wealth equal or an excess of a prescribed threshold amount Nisaab.
The schools differ regarding the transfer of Zakat from one vicinity to another. It is preferable and more meritorious to spend the Zakat on the residents near vicinity except where some urgent need necessitates its transfer to another place
Who is not entitled to receive Zakat
Most schools do not permit giving Zakat to parents, grandparents, children, grandchildren or wife. Also it is not permissible to give Zakat to individual among the progeny of Bani Hashim (Sayeed) unless the payer is also a sayeed, from Bani Hashim.
Khums
In addition to the Zakat, in Islamic tradition, Khums refers to the historically required religious obligation of any Muslim army to pay one-fifth of the spoils of war, the money collected from non-believers after a military campaign; this tax was paid to the caliph or sultan, representing the state of Islam.
However, in Shia tradition, in addition to the 2.5% of Zakat which is determined very different than Sunni traditions, the Shia are required to pay 20% Khums tax(1/5) not only on war booty al-ghanima, but they are required to pay Khums on six additional categories, the objects obtained from the sea (al-ghaws),treasure (al-kanz), mineral resources (al-ma'adin), gainful earnings (arbaah al-makaasib, business profits may include employment income), the lawful (al-halaal) which has become mixed up with the unlawful (al-haraam), and land which is transferred from a Muslim to a dhimmi.
The recipients of the collected Khums in Shia tradition, have been the descendants of Prophet Muhammad, the Shia clergy and it is collected by a representative of the Imam only .
There are differences of opinion about the scope of Khums in Sunni and Shia sects of Islam, as well as who owns it and how the collected and where should be spent. In Sunni Islam certain Zakatable properties resemble Khums and it is limited to minerals, hidden treasurer (rikaz) and may include unclaimed properties. No Khums is levied on residue income on any type of income from employment,business or investment in Sunni tradition.
Disclaimer: This article is written for general information only, it must not be used as an authority. Because there are many schools of interpretation with regads to the Zakat n Islamic traditions, one must refer this to the trustworthy knowledgeable authorities in this subject when determining and paying of the Zakat
