Minimum Nisab set at Rs44,415 for Zakat deduction

Banks will not deduct Zakat from accounts having lower balance

KARACHI: People maintaining a minimum of Rs44,415 balance in savings, profit and loss sharing or similar bank accounts in Pakistan on the first day of Ramazan will be liable to pay 2.5% Zakat on the total balance, the State Bank of Pakistan (SBP) announced on Friday.

However, people who have balance lower than the minimum one or those who have submitted Zakat exemption affidavit by the given deadline of 15 Shaban (April 21) or those people and corporations maintaining ‘current accounts’ are not liable to pay Zakat at banks.

“According to Administrator General Zakat, Ministry of Religious Affairs and Interfaith Harmony, Nisab for Zakat for the Zakat year 1439-40 AH is Rs44,415 (Rupees forty four thousand four hundred fifteen only),” according to SBP notification.



First day of Ramazan has already been notified as the ‘deduction date’ of Zakat from savings bank accounts, profit and loss sharing accounts and other similar accounts having credit balance of at least Rs44,415, the central bank said.

The first day of Ramazan will fall on May 6 or 7, 2019 (subject to sighting of the moon).

The minimum amount set for zakat deduction this year is Rs5,217 higher than the Nisab of Rs39,198 last year.

According to sources, the government collected close to Rs17.7 billion in zakat deductions from banks across the nation, during the three fiscal years 2015-2017.

The Nisab for Zakat is computed to be equivalent to 52 tola worth of silver (or 606.32 grams).  The collected amount of zakat is distributed among needy people, including hospitals patients.

Published in The Express Tribune, May 4^th, 2019.

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