Nisab set at Rs103,159

Banks will deduct 2.5% of amount in bank accounts as zakat on 1st Ramazan

KARACHI:

The Ministry of Poverty Alleviation and Social Safety on Friday notified Rs103,159 as the Nisab of zakat – the minimum amount in bank accounts on which zakat will be deducted.

Banks will deduct 2.5% of the total amount as zakat on the first day of Ramazan.

No deduction of zakat will be made at source, in case the amount standing to the credit of an account in respect of assets is less than Rs103,159, said a notification available on the State Bank of Pakistan’s (SBP) website.

The Nisab of zakat is higher by 16%, or Rs14,232, this year compared to the Nisab of Rs80,933 announced last year.

The first day of Ramazan, which is likely to fall on March 23 or 24, 2023 (subject to the sighting of moon), has been notified as the ‘deduction date’, when zakat will be deducted from savings bank accounts, profit and loss-sharing accounts and other similar accounts.

Besides, those people who have submitted zakat exemption affidavits are not liable to pay zakat on their bank balance. Moreover, those people and corporations who are maintaining current accounts are also not liable to pay zakat on their accounts.

The amount collected on account of zakat is distributed among the needy and poor patients in hospitals.

Published in The Express Tribune, March 18^th, 2023.

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