Treasure of Islamic State - Zakat

Treasure of Islamic State - Zakat

Literal meaning

Zakat, derived from the root word zaka (literally meaning increase). In Arabic dictionary meaning it is a good fertile land. Syed Abul A'la Maududi in his book معاشیات اسلام (Islamic Economics) writes “Literal meaning of Zakat is increase and purity”.

Sharia’ah Meaning

According to Syed Abul A'la Maududi Zakat is that monetary worship which is levied compulsorily on every Muslim having wealth above an exemption limit (نصاب) for the purpose that he purifies his wealth (مال) and soul (نفس) by discharging the right of Allah (SWT) and his servants (بندے). Furthermore, in the society where he lives,. grow love & favour, generousness and mutual cooperation & equity rather than stinginess, selfishness, malice etc.

Quranic Ayat Concerning Zakat

In Quran Zakat (زکوۃ) is mentioned like Salat (نماز). 

 

قَدْ أَفْلَحَ مَن تَزَكَّى-

 

Indeed only he who is purified (from the afflictions of his ill-commanding self and pollution of sins) will triumph, (87:14)

Zakat increases wealth in this world and also increases reward (ثواب)  in the hereafter (آخرت).

 

یَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ

Allah eliminates usury (i.edeprives usurious profits of prosperous growth) and multiplies alms gifts (i.e increases blessings of clean wealth manifold through charity donations) (2:276)

When one pays Zakat, his wealth becomes purified and he remains safe from loss & calamities. He attains purity of soul (تزکیہ نفس).

 

خُذْ مِنْ أَمْوَالِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا

Collect from their wealth alms (Zakat — the Alms-due) so that by these (alms) you may purify them (of their sins) and (by this purification of faith and riches) bestow upon them blessing (9:103)

Opinion of Jurists (فقہا)

In his book معاشیات اسلام (Islamic Economics) Syed Abul A'la Maududi says that Jurists have defined the term Zakat differently from each other.

1. Allama Ibn Qudamah says  حق یحب فی المال it is an obligatory right in wealth. 

2. According to Abd al-Rahman al-Jaziri تملیک مال مخصوص لمستحتہ شرائط مخصوصۃ to give a specific wealth according to specific conditions to its rightful.

3. Imam Raghib Isfahani says some part of wealth is taken out as a right to Allah (SWT) and distributed to the poor.

4. Imam Ahmed bin Hunble says that Zakat is a right of specific persons on specific wealth which becomes obligatory after the passing of stipulated time.

5. Hazrat Shah Wali Ullah in his books حجۃ البالغہ (The Conclusive Argument of God) writes under the topic of “Secrets of Zakat” (زکوۃ کے اسرار) “look out when a calamity is struck on a poor and he prays to Allah (SW) crying then his showing of his humbleness opens the doors of forgiveness of Allah (SWT).” He further writes that “Alms bring more blessings. As a result, the fire of Allah's (SWT) wrath is extinguished, and punishment on the day of judgement can be avoided.

Obligation & Importance

Zakat is one of the basic tenets of Islam that is obligatory on every Muslim who has wealth over and above the exemption limit. We can judge its importance from the fact that it was mandatory in all the Shari'ah from Hazrat Adam (AS) to Prophet Muhammad (PBUH). Many Quranic verses are witness to the fact that it is one of five pillars of Islam. Imam Abu Hanifa said الزکوۃ واجبۃ علی الحر البعاقل البالغ المتلمر از ملک نصابا ملکاتاما Zakat is obligatory for a free, sane, adult, and possessing a stipulated wealth. Here the word واجب is used in the meaning of فرض (obligation) i-e that Shariah orders which must be fulfilled by every Muslim.

Zakat is not an option or a righteous deed but it is an obligation and its fulfilment is compulsory. One who does not pay Zakat is a culprit. The one who denies its existence is a disbeliever.  The Hadith proves that there will be fighting with Zakat disbelievers.

Quranic References for the Obligation of Zakat

In many of Quranic verses Prayer (نماز) and Zakat (زکوۃ) have been mentioned together. 

 

1. وَأَقِيمُواْ الصَّلاَةَ وَآتُواْ الزَّكَاةَ وَارْكَعُواْ مَعَ الرَّاكِعِينَ۔

And establish Prayer and pay Zakat (the Alms-due) regularly and kneel down (together) with those who kneel down. (2:43)

One of the attributes of a believer is mentioned that he pays Zakat.

 

2. قَدْ أَفْلَحَ الْمُؤْمِنُونَ۔ الَّذِينَ هُمْ فِي صَلَاتِهِمْ خَاشِعُونَ۔

 

Certainly the believers have attained their goal, Those who become most humble and submissive in their Prayer, (23:1-2)

A person becomes rightful of blessings of Allah (SWT) when he pays Zakat.

 

3.  وَرَحْمَتِي وَسِعَتْ كُلَّ شَيْءٍ فَسَأَكْتُبُهَا لِلَّذِينَ يَتَّقُونَ وَيُؤْتُونَ الزَّكَـاةَ وَالَّذِينَ هُم بِآيَاتِنَا يُؤْمِنُونَ

and My Mercy encompasses everything. So, very soon I shall prescribe this (mercy) for those who adopt Godwariness and pay Zakat (the Alms-due) regularly, (7:156)

In the Quran this has been considered a fundamental purpose of an Islamic State. 

 

4. الَّذِينَ إِن مَّكَّنَّاهُمْ فِي الْأَرْضِ أَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ وَأَمَرُوا بِالْمَعْرُوفِ وَنَهَوْا عَنِ الْمُنكَرِ وَلِلَّهِ عَاقِبَةُ الْأُمُورِ

 

(These men of Truth) are those who, if We establish their rule in the earth, will establish (systems of) Prayer, (organise and control) paying of Zakat (the Alms-due), enjoin righteousness (and piousness in the whole society) and forbid (people from) evil. And the result of all the endeavours is in the control of Allah. (22:41)

 

5. وَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ وَأَطِيعُوا الرَّسُولَ لَعَلَّكُمْ تُرْحَمُونَ

 

And establish (the system of) Prayers and (ensure) the payment of Zakat (the Alms-due) and accomplish (absolute) obedience to the Messenger (blessings and peace be upon him) so that you may be granted mercy (i.e. the blessings of sovereign rule, stability, peace and security may endure and continue). (24:56)

 

6. اِنَّ الَّذِينَ آمَنُواْ وَعَمِلُواْ الصَّالِحَاتِ وَأَقَامُواْ الصَّلاَةَ وَآتَوُاْ الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ

Surely those who believe and do pious acts and establish Prayer and pay Zakat (the Alms-due) regularly have their reward with their Lord (2:277)

 

7.  فَأَقِيمُوا الصَّلَاةَ وَآتُوا الزَّكَاةَ وَاعْتَصِمُوا بِاللَّهِ هُوَ مَوْلَاكُمْ فَنِعْمَ الْمَوْلَى وَنِعْمَ النَّصِيرُ

 

So, (to sustain this status) establish Prayer, pay Zakat (the Alms-due) and hold fast to (the Embrace of) Allah. He (alone) is your Helper (Patron). So what an excellent Patron and what an excellent Helper is He! (22:78)

Hadith References for the Obligation of Zakat

Prophet Muhammad (PBUH) on many occasions described the importance of Zakat. In Hadith Jibril, the Prophet (PBUH) while explaining the Islam said about Salat (نماز) and thereafter  Zakat (زکوۃ). The Prophet Muhammad (PBUH) gave Hazrat Muadh Ibn Jabal some advice while sending him to Yemen. It was one of these to inform them that Allah (SWT) has made it obligatory for them to pay the Zakat from their property and it is to be taken from the wealthy among them and given to the poor. (Sahih Bukhari Vol. 2, Book 23, No. 478)

1. Narrated by Hazrat Abu Huraira that Allah's Messenger (PBUH) 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 bald headed 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.' ' Then the Prophet (ﷺ) recited the holy verses:-- 'Let not those who withhold . . .' (to the end of the verse). (3.180) (Sahih Bukhari Vol.2, Book 24 No. 486)

2. Narrated by Abdullah Ibn Abi Aufa that Whenever a person came to the Prophet (PBUH) with his alms, the Prophet (PBUH) would say, "O Allah! Send your Blessings upon so and so." My father went to the Prophet (ﷺ) with his alms and the Prophet (PBUH) said, "O Allah! Send your blessings upon the offspring of Abu Aufa.” إِذَا أَتَاهُ قَوْمٌ بِصَدَقَتِهِمْ قَالَ ‏"‏ اللَّهُمَّ صَلِّ عَلَى آلِ فُلاَنٍ (Sahih Bukhari Vol. 2, Book 24, No. 574)

3. Abu Huraira reported Allah's Messenger (way peace be upon him) as saying: If any owner of gold or silver does not pay what is due on him, when the Day of Resurrection would come, plates of fire would be beaten out for him; these would then be heated in the fire of Hell and his sides, his forehead and his back would be cauterised with them. Whenever these cool down, (the process is) repeated during a day the extent of which would be fifty thousand years, until judgement is pronounced among servants, and he sees whether his path is to take him to Paradise or to Hell. (Sahih Muslim Book 5, No. 2161)

The above hadith is in accordance to this verse of the Quran

 

 وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ وَالْفِضَّةَ وَلاَ يُنفِقُونَهَا فِي سَبِيلِ اللّهِ فَبَشِّرْهُم بِعَذَابٍ أَلِيمٍ۔ َیوْمَ يُحْمَى عَلَيْهَا فِي نَارِ جَهَنَّمَ فَتُكْوَى بِهَا جِبَاهُهُمْ وَجُنوبُهُمْ وَظُهُورُهُمْ هَـذَا مَا كَنَزْتُمْ لِأَنفُسِكُمْ فَذُوقُواْ مَا كُنتُمْ تَكْنِزُونَ۔

 

And those who hoard silver and gold and do not spend it in the cause of Allah, warn them of a grievous torment. The Day when this (gold, silver and wealth) will be heated in the Fire of Hell, their foreheads, sides and backs will be branded with this (heated material, and it will be said to them:) ‘This is the same (wealth) that you treasured for (the benefit of) your souls. So taste (this wealth) which you had been amassing.’ (9:34-35)

Fight with the Disbelievers of Zakat

From the Hadith of Prophet Muhammad (PBUH) we know the end result of disbelievers of Zakat. In the era of Hazrat Abu Bakar (RA) some Arabic tribes refused to pay Zakat so he (RA) decided to fight with them. Hazrat Umar (RA) said , how can you fight with them when these people testify about Oneness of Allah (SWT) and Prophethood of Muhammad (PBUH). Then he replied

 

وَاللَّهِ لأُقَاتِلَنَّ مَنْ فَرَّقَ بَيْنَ الصَّلاَةِ وَالزَّكَاةِ، فَإِنَّ الزَّكَاةَ حَقُّ الْمَالِ، وَاللَّهِ لَوْ مَنَعُونِي عَنَاقًا كَانُوا يُؤَدُّونَهَا إِلَى رَسُولِ اللَّهِ صلى الله عليه وسلم لَقَاتَلْتُهُمْ عَلَى مَنْعِهَا

"By Allah! I will fight those who differentiate between the prayer and the Zakat as Zakat is the compulsory right to be taken from the property (according to Allah's orders) By Allah! If they refuse to pay me even a she-kid which they used to pay at the time of Allah's Messenger (PBUH) I would fight with them for withholding it" (Sahih Bukhari Vol. 2, Book 24, No. 483)

Upon hearing this Hazrat Umar (RA) said 

 

فَوَاللَّهِ مَا هُوَ إِلاَّ أَنْ قَدْ شَرَحَ اللَّهُ صَدْرَ أَبِي بَكْرٍ ـ رضى الله عنه ـ فَعَرَفْتُ أَنَّهُ الْحَقُّ‏.‏

"By Allah, it was nothing, but Allah opened Abu Bakr's chest towards the decision (to fight) and I came to know that his decision was right." (Sahih Bukhari Vol. 2, Book 24, No. 483)

Taking into considerations of the clear pronouncements of Quran and Hadith, jurists have a collective verdict that a disbeliever of Zakat is a disbeliever and an apostate.

Imam Nawawi says; “whoever denies the obligation of Zakat, he has denied Allah (SWT) and His messenger Muhammad (PBUH). So he will be considered a disbeliever.” (Islam Ka Qanoon-e-Mahasil by Dr. Noor Muhammad Ghaffari)

Allama Ibn Hazm says: “If a person does not pay Zakat, Zakat should be taken from him regardless of whether he likes to pay it or not, as denying the obligation of Zakat is an act of war against the Islamic system. If he denies the obligation of Zakat, then he is an apostate. If he hides it, he is violating an order. Thus, the state must punish him until he pays Zakat or dies and becomes liable for Allah's curse and wrath..”

Shariah Items Subject to Zakat

Those items on which Zakat is levied according to Shariah are five.

1. Gold, Silver

2. Trading Goods

3. Agriculture Produce

4. Livestocks (camel, cow, goat, sheep

5. Cash & Cash Equivalents

Conditions of Zakat

Gafif Baad Al Fatah Tabara in his famous book Rooh-e-Islam writes that there are four conditions for the obligation of Zakat. Succinctly these are as follow:

1. Assets should be in complete ownership of the Zakat payer.

2. That wealth should reach the Nisaab i-e the minimum amount required to be eligible to pay Zakat.

3. The Nisab wealth must at least be owned by Zakat payers for one lunar year.

4. That the wealth must be in excess of necessary requirements i-e must reach the minimum amount required to pay Zakat.

Nisab of Zakat and its Ratio

Nisab is the minimum amount of wealth on which after the passing of one lunar year Zakat becomes compulsory. Normally Zakat is paid in the month of Raja. Muhammad (PBUH) said Zakat is not paid from accumulated wealth before a year has passed.

According to Hazrat Ali (RA) fortieth (1/40th or 2.5%) part of wealth is to be paid as Zakat i-e one Dirham from Forty Dirhams. Similarly, seven and half tolas of gold and 52 tolas of silver are liable to Zakat.

Assets Liable to Zakat

In Islamic Economics, there are two kinds of assets that are liable to Zakat.

1. Outward Assets such as agriculture, cow, camel, goat etc.

2. Inner Assets such as gold, silver, trading goods

Assets not Liable to Zakat

Zakat does not apply to goods that are needed for basic livelihood. Therefore, jurists have mentioned the following goods as exempt from Zakat.

1. A house for personal residence

2. Clothing

3. Household Utensils

4. Livestock for riding

5. Weapons of war

6. Tools of Professionals

7. Books for reading

8. Grain stock for eating

9. Decoration items for house

Some General Issues

1. Intention to pay Zakat is a condition.

2. Charity does not fall under the purview of Zakat.

3. Disbelievers are subject to zakat.

4. Minors and slaves are not subject to Zakat.

5. Intellect is a condition for the payment of Zakat. Zakat does not apply to insane people.

6. Zakat is not applicable to lost goods.

7. After payment of loan, if the wealth becomes less than the Nisab then Zakat is not payable.

8. If the loan is prior to the obligation of Zakat then it is not subtracted from wealth.

9. Zakat can be paid openly or with an announcement as both are preferred while unseen charity is preferred.

10. Owner of wealth is to payZakat only after receiving the Nisab.

11. if a person passes away before he gets the chance to pay his zakat, then the obligation for zakat is abrogated on him.

12. if he left a will stating that he wishes for his zakat to be paid from his inheritance. Thus, in this situation, a sum for the zakat should be paid of which it is of a third from the inheritance.

13. The Nisab and Zakat payment ratio cannot be changed.

14. Owner of Nisab wealth can pay Zakat for some years in advance.

Disbursement of Zakat

Masaraf (مصارف) is plural of Masraf (مصرف) and its meaning is utilisation. In context to Zakat, its meaning is those people on whom Zakat funds can be utilised. The utilisations of Zakat Funds are explained clearly and in detail in the Quran in order to prevent disbursement of Zakat from being restricted to the wishes of the ruler. It is also to prevent those greedy people who are only concerned with getting wealth and have no fear of Allah (SWT).

Even in the time of Prophet Muhammad (PBUH), people wished to have a portion of Sadaqat, but when Prophet Muhammad (PBUH) rejected their wish, they made false accusations against him. Then these verses of the Quran were revealed.

 

اِنَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللّهِ وَابْنِ السَّبِيلِ فَرِيضَةً مِّنَ اللّهِ وَاللّهُ عَلِيمٌ حَكِيمٌ

Indeed alms (Zakat) are meant for the poor and the indigent, and those who are deployed to collect charities and those in whose hearts the inculcation of love for Islam is aimed at. And, (moreover, spending Zakat for) freeing of human lives (from the yoke of slavery) and removing the burden of those who are to pay debt and (those who toil hard) in the cause of Allah and the wayfarers (is true). This (all) has been prescribed by Allah and Allah is All-Knowing, Most Wise. (9:60)

Syed Abul A'la Maududi has explained the above mentioned eight categories of utilisation of Zakat Funds as follows:

1. Poor (فقیر) - The person who is dependent on someone for his sustenance.

2. Indigent (مساکین) - These are all those people who are more vulnerable than general needy persons.

3. Administrators (عاملین) - These are people who are engaged in the administration of Zakat Funds i-e collection, accounting, safe keeping, disbursement.

4. Turning of Hearts (مؤلفہ القلوب) - These are those people whose hearts are to be turned to Islam.

5. Freeing Human Lives (فی الرقاب) - Freeing of human lives from the yoke of slavery.

6. Indebted (ْقرضدار) - These are those people if they pay their debt out of their wealth and their wealth falls short of Nisab.

7. In the Cause of Allah (SWT) (فی سبیل اللہ) - All those deeds in which pleasure of Allah (SWT) is sought.

8. Traveller (ّمسافر) - Traveler whether he is rich at home but while travelling if he is in need of help then he shall be helped from Zakat Funds. 

 

Categories on which utilisation of Zakat is not permitted

1. The person who has wealth up to Nisab except for travellers.

2. Healthy person who is able to earn his livelihood.

3. Descendents of Hashim i-e Sadat (سادات).

4. Parents up to grandparents and children up to grandchildren and other relatives who are under the guardianship.

5. For construction of Masjid (مسجد).

6. For the burial of the dead.

7. For public welfare activities

8. To spouse

Flaws of Current System of Zakat

Zakat is deducted on the deposits in the banks. The rules and regulations that are devised for the receipt of Zakat have many flaws, which are stated below succinctly.

1. The threshold for deduction of zakat is set at Rs. 3,200/- which is incompatible with Sharia.

2. This system of Zakat is limited to bank deposits only. People withdraw their money from banks before Ramzan and thus evade the payment of Zakat.

3. Banks do not take into consideration that one lunar year has passed on the deposits. They deduct zakat on deposits that have been deposited a few days before Ramzan which is incompatible with Sharia.

4. The high moral character and high standard of ethics are considered while selecting the Zakat committee chairman rather only on political bases the selection is made. 

5. The lack of knowledge of Sharia rules for Zakat system results in distribution of Zakat on political bases which is against the tenets of Islam and the right of real deserving people is usurped.

6. Islam teaches charity in a sense that one hand gives charity and the other hand should not know it but we do charity for the purpose of self projection and for political gain which is totally un Islamic and the Sharia rules.

7. The Shia sect has been exempted from this important tenet of Islam whereas according to Jafari Fiqh Zakat is compulsory on them also.

Solution for flaws of Zakat System

In Pakistan poverty and begging are big problems. Unemployment, class conflict, crimes and unjust distribution of wealth is prevalent in Pakistan. The solution of all these evils is in the implementation of the Zakat system in its true spirit. Hifzur Rehman Seoharwi in his book اسلام کا اقتصادی نظام (Economic System of Islam), writes that Islam brings capitalist to such a state that is moderate and equitable.

Other General Issues

1. The collection of Zakat is the responsibility of the state and it is to be deposited in Bait Al Mal (بیت المال).

2. If someone distributes his Zakat himself to the deserving, it is allowed.

3. Zakat should be distributed among relatives, neighbours, locals as far as possible. 

4. Zakat should not be sent to remote areas without just cause.

5. After payment of Zakat, it should not be reminded as favour (احسان جتانا).

Zakat and Tax

Abul Kalam Azad said “Zakat is a tax that is collected like the income tax of today.” But this definition is not correct. According to Syed Abul A'la Maududi “about Zakat it should be understood that it is not a tax rather it is a worship and one of the tenets of Islam.”

Difference between Zakat & Tax

1. There is nothing common in Zakat and tax about utilisation, purpose, end results.

2. First difference is in the name. The meaning of Zakat is purity, fertility and blessing. Whereas in Arabic for tax, the word ضریبہ is used whose meaning is to paste, to slap, to require.

3. Zakat is a worship that is done to seek the pleasure of Allah (SWT) . Whereas tax is levied by the state and it has nothing to do with any worship.

4. Zakat is only levied on Muslims. Whereas tax is levied on both Muslims as well as non-Muslims.

5. After the collection of Zakat, the state is bound to distribute its large portion to deserving people. Whereas after the collection of tax, the state spends it to meet its expenses.

6. Zakat is such an obligation that is compulsory on rich people and it cannot be rescinded. Whereas the state can exempt any person from the payment of tax.

7. If the state exempts a person from paying tax then he is free from its obligation but Zakat is a matter between Allah (SWT) and the person (بندے). If the state does not implement a system for collection and distribution of Zakat then the person is duty bound to distribute his Zakat to the deserving people.

8. The ratio and Nisab of Zakat is fixed by the Prophet (PBUH) and there is no authority and space for any amendment in it Whereas ratio of tax is fixed by the state and the state has power to change its threshold limit and its ratio.

9. The categories for utilisation of Zakat funds is mentioned in the Quran and it cannot be utilised anywhere else. Whereas the state can spend income from tax anywhere.

10. Income tax is levied on income whereas Zakat is not limited to income rather it is levied on the total assets of Muslims.

11. Generally Zakat is not utilised on rich people. Whereas tax is received from poor people and is spent on the luxuries of the rich people.

12. Zakat is a constant and an Islamic obligation. Whereas there is no such thing in tax as to its exemption limit and its levy ratio.

13. There are spiritual and ethical purposes of Zakat but there is no such purpose of tax, it is limited to materialistic purposes.

Is it allowed to levy Income Tax other than Zakat?

There are three schools of thoughts concerning this. 

1. First says there is no justification for any other tax in the presence of Zakat.

2. Second argues that the State cannot levy any tax other than Zakat. However, it can increase the ratio of Zakat.

3. Third school is of the view that the State can levy any other tax besides Zakat. Syed Abul A'la Maududi has supported this third point of view in his “Tarjuman Ul Quran” (ترجمان القرآن).

Objectives and Expediencies

Islamic system through Zakat desires to achieve following objectives:

1. That heart of a Muslim should be free from the love of this world.

2. That to create a sense of achieving the pleasures and blessings of Allah (SWT).

3. That to acknowledge the favours of Allah (SWT) while paying the Zakat.

4. That to create a passion for spending wealth in the way of Allah (SWT).

5. That to create a sense of mutual love and affection for each other between the rich and poor.

6. That to create a sense of submission to the will of Allah (SWT) in every affair.

7. That after paying the Zakat the remaining wealth is protected from any loss.

8. That to increase the wealth and blessings.

9. That Islamic religion is protected and successful.

Economic Benefits of Zakat System

1. Support of Public - Zakat is a cornerstone of Islamic Economics. Its position in the system is like the spinal cord in a human body. Islam through Zakat gives economic protection to the poor, indigent, the needy persons of the society. Besides this, there is no other system that protects the future of the rich. In this system there are benefits and prosperity for the entire society. Shah Waliullah Dehlawi in his famous book Hujjat Ul Balagha (حجتہ اللہ البالغہ) - The Conclusive Argument from God -  says “the second expediency of the Zakat is for the society. In a society there are all types of people including poor, needy, weak and this state makes rounds among people, today one is in this state and tomorrow someone else is. So if this way of helping the poor and needy is not prevalent then these would be dead by starvation. Further, it is necessary for the city administration to have such a source of wealth on which to depend for the livelihood of the poor, needy and themselves.”  Zakat is such a beautiful loan that Allah (SWT) is responsible for its substitute and it is the most effective way of support. Abul A'la Maududi in his book Islamic Economics writes “In the Quran for Zakat and Sadaqat on many occasions the word انفاق فی سبیل اللہ i-e  spend in the way of Allah (SWT) has been used and in other places it is also said that whatever you spend in the way of Allah (SWT), it is a beautiful loan to Allah(SWT).” If one thinks deeply then it will transpire that in reality the goodness of every person is associated with the goodness of the group in which he lives. For example if for the sake of support if an orphan is raised and educated then he will become an earning hand and if it is to be thought that his upbringing and education was the responsibility of his father and he should have left for his son some wealth then this child will become  a wanderer and could become criminal. This complexity has been solved by the One, the name of whose book is “Quran”. This belief should be firm in every Muslim that Allah (SWT is the sole owner of the treasures of heavens and the earth. وَلِلَّهِ مِيرَاثُ السَّمَاوَاتِ وَالْأَرْضِ (ownership of the heavens and the earth belongs to Allah alone 57:10). According to Professor Khurshid Ahmed that Islam through Zakat inculcates in a person that whatever he earns is not due to the efforts of his alone rather many forces of nature are in work also. Further, whole society also helps him in thousands of ways, therefore, there is a right of others in his wealth. It is the duty of the rich to help those who are left behind in the economic race. That society which can not help the weak and needy, can not be said to be a human society (اسلامی نظریہ حیات) .

2. Administration of Public Support - That means Zaklat to be collected at one place and it is necessary that its utilisation should be from that place. This means that collection and disbursement of Zakat is the responsibility of the State and it should perform this duty diligently.  There is a narration by Hazrat Hasan Ibn Ali (RA) in Musnad Ahmed Ibn Hanbal that Prophet Muhammad (PBUH) used to inspect wealth collected as Sadaqat that were kept in a store and Hazrat Bilal (RA) was appointed for its supervision. This narration justifies the collection of Zakat at a central place.

3. Eradication of Poverty - Islam desires the eradication of poverty through Zakat. It is a fact that in a society where the rich pay fortieth part of their wealth for the distribution of its poor so that they can manage their livelihood in a respectful manner then no person can remain poor therein. That society becomes such a society where they will all be able to pay Zakat but none will be the recipient. In this context the time of Hazrat Umar Bin Abdul Aziz is a big example and that is not a thing of the past rather it can be accomplished today also. Abul Kalam Azad says “If Muslims don't do anything today, only establish Zakat system according to the Quranic Orders then without any hesitation it can be claimed that their all collective problems, difficulties can be automatically solved” (مقالہ: اسلام کے معاشی نظام میں زکوۃ کا مقام). According to Professor Khurshid Ahmed “Islam through Zakat system establishes economy on sound footings and creates mutual cooperation۔” Allama Iqbal says “Islam is such a religion in which poor levy tax on rich and that is not a begging or charity rather it is lawful right of poor, indigent and deprived that is due from rich and till the rich don’t pay it they are offenders and debtors of Allah (SWT), His Messenger (PBUH), poor and deprived ( اسلام کا نظام زکوۃ و عشر). 

4. Circulation of Wealth - One of the biggest problems of the Capitalist system is that wealth is concentrated in few hands and the masses become poor. Islam desires that national wealth should not be circulated within a few hands. Allah (SWT) says in Quran: ُھُوَ الَّذِي خَلَقَ لَكُم مَّا فِي الأَرْضِ جَمِيعاً (He is the One Who created for you all that is in the earth 2:29)  كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاءِ مِنكُمْ (that (the whole wealth) may not circulate (only) among the rich of you 59:7). That is Allah (SWT) has ordained Muslims to pay Zakat for the sustenance and help of the helpless. Therefore, through the system of Zakat, national wealth goes in the hands of different people and it is quite simple that when every year substantial amount is transferred from rich to poor then purchasing of essentials of life is increased, demand for goods is increased, production of goods is also increased and employment for employable person is increased and thereby whole nation will prosper. Because society prospers economically through circulation of wealth and that is the objective of Zakat.

5. Equitable Distribution of Wealth - Today’s important economic problem is the equitable distribution of wealth. Zakat is the best system through which the wide gap between the rich and the poor can be reduced because Zakat creates a system of equitable distribution of wealth. In the Zakat system wealth is transferred from the rich to the poor automatically. Therefore, in an Islamic society no two groups are created who have a wide gap between their respective wealth as is the case in the Capitalists system where one group enjoys all the luxuries of the world and the other endures starvation and poverty. Islam places this golden principle of equitable distribution of Zakat at its forefront. 

6. Poverty Alleviation - Currently in Pakistan every 5th person is unemployed. One of the reasons for this is that they don’t have any capital to start a business e.g. farming, trade or handicraft. But if they are paid from Zakat funds, they can be saved from unemployment. Jurists have written that “If someone wants to adopt a profession like tailor, laundry man, butcher or something else then he should be paid enough from Zakat funds so that he should be able to buy tools to start a business and if someone is a farmer then he should be paid enough to be able to purchase a piece of land so that he can start farming and through its produce he is able to manage his affairs.

7. Elimination of Crime - Many crimes originate because of poverty and hardship. When an affected person can’t fulfil his legitimate requirements then he turns to take revenge from the society and wants to capture the wealth of others.. If it is said that oppressor was in the beginning an oppressed person is not untrue. When he tries illegitimate ways to get his rights then this thing makes him a habitual criminal. But if the system of Zakat is implemented in true spirit then crimes can be prevented.

8. Elimination of Injustice and Usurpation - In our country big landholders and capitalists give loans to small landholders and poor people and thus make them slaves forever. Poor because his necessities remain under debt for a lifetime. But if Zakat is implemented in the country according to the principles of Islamic Shariah then there is no need for someone needy to beg from capitalists or landholders.

9. Increase in National Production - In the USA many millionaires keep their wealth idle and don't spend their wealth in productive use as a result of this market comes under recessionary cycle. But in a society where the Zakat system is in vogue then the people there can’t keep their wealth idle because by paying Zakat every year their wealth decreases. Therefore, they are forced to invest in businesses e.g. may establish factories or invest on the basis of partnership or mudarabah. The benefit of this will be that not only it will increase their wealth but also will provide opportunities to other people to do business and thereby national production of the country will be increased.

10. Elimination of Begging - Islam educates human beings to be courageous and self respect and inculcates the hatred for begging because begging is an insult and humiliation to the human soul. Ibn ’Umar (RAA) narrated that The Messenger of Allah (ﷺ) said: “A man who persists in begging people to give him charity, will come on the Day of Judgment and there will not be a piece of flesh on his face.” (Sahih Bukhari 1474)  The Zakat system eliminates professional beggars because handicapped, orphans and needy are provided sustenance from Bait Al Mal. If the Zakat system is implemented according to the principles of Islamic Shariah then begging will be eliminated totally.

11. Solution of Concentration of Wealth - In Pakistan concentration of wealth is another important issue. This means that a large portion of national wealth is in the hands of few people. The solution to this problem lies in the system of Zakat. Because in this system the rich have to pay fortieth part of their wealth to the poor on account of Zakat. Thus their wealth shall not concentrate only in their hands and because of this economy shall be equitable and balanced. Hifzur Rehman Seoharwi in his book اسلام کا اقتصادی نظام (Economic System of Islam), writes that Islam brings capitalist to such a state that is moderate and equitable. That is it brings a state somewhat down from high so that a natural difference remains between the two while keeping a sort of equality. According to Afzal Ur Rehman “In a Muslim economy, in spite of the non-existence of interest, people would never hoard idle cash balances simply because of 2.5% levy in the form of Zakat which they would like to earn by investing their funds and pay Zakat of 2.5% out of their profit.(Economic Doctrines of Islam)”

12.  End of Class Conflict - Rich of whose nation feels the discomfort of its poor and a sense of practical help to them, and where assistance is provided to the deserving individual after searching for them, then not only are the weak and sick sectors of the nation protected from destruction but the collective welfare remains intact. A class conflict does not arise, which generally takes place due to unemployment and starvation.

13. Cure of Hoarding - One of the fundamental issues of the economy is hoarding. The Zakat system is necessary for elimination of this curse and is an excellent help and assistance for the creation of an ideological society. In the system of Zakat there is a solution to all the economic problems of any society.

14. Is Zakat an Individual Responsibility or a Collective Concern - Islam has declared Zakat as one of the fundamental principles of Islam and a worship. It is an obligation on Muslims that they must consider it a sacred religious obligation and fulfil it by obeying the order of Allah (SWT)of Allah (SWT) to achieve His pleasures so that this act of paying Zakat is accepted in real sense in His presence. It is an obligation ordained by Allah (SWT):

 

َوَمَا أُمِرُوا إِلَّا لِيَعْبُدُوا اللَّهَ مُخْلِصِينَ لَهُ الدِّينَ حُنَفَاءَ وَيُقِيمُوا الصَّلَاةَ وَيُؤْتُوا الزَّكَاةَ وَذَلِكَ دِينُ الْقَيِّمَةِ

 (Whereas they were commanded to worship only Allah, making their Din (faith and devotion) sincerely His (dissociating from every falsehood), to establish Prayer and to pay Zakat (the Alms-due) regularly. And this is the straight and firm Din (Religion).98:5). Zakat is a responsibility and obligation of Muslims and Allah (SWT) has made it obligatory for them. As he fulfils his obligations then he deserves the Blessings of Allah (SWT). As a result, he will belong to the blessed and fortunate people for whom Allah (SWT) states in the Quran that angels will say to them, “Enter the paradise ”.

الَّذِينَ تَتَوَفَّاهُمُ الْمَلَآئِكَةُ طَيِّبِينَ يَقُولُونَ سَلاَمٌ عَلَيْكُمُ ادْخُلُواْ الْجَنَّةَ بِمَا كُنتُمْ تَعْمَلُونَ 

 

(The angels take their lives while they are pure, clean, pleased and contented (due to obedience and piety. The angels tell them the moment they take their lives:) ‘Peace be upon you. Enter Paradise due to (the pious deeds) that you used to do.’ 16:32). In Zakat besides worship there are high humanity, moral and spiritual objectives that are pointed out in the Quran and Hadith and researchers of Islam have explained these in detail. The benefits of Zakat are not only of equality; rather these are of equality as well as every kind of equity and full of long term effects. Further, these benefits are not only on individual level but also on a collective level. When individuals receive Zakat then the whole society benefits thereby because social peace and justice is achieved and society level problems are solved.

15. System of Zakat in Pakistan - Gen. Muhammad Zia Ul Haq announced Zakat and Ushr Ordinance on 20th June 1980. According to this ordinance Zakat is received every year in the month of Ramadan.