Punjab government prepares new zakat law
Province to get more funds under devolved system.
LAHORE:
The chief minister has approved new legislation for the collection of zakat and ushr at the provincial level starting from next Ramazan, The Express Tribune has learnt.
Zakat and ushr became a provincial subject under the 18th Amendment. “The chief minister has approved a summary for the introduction of a new Zakat and Ushr Act,” an official said.
Previously, the Federal Zakat Council administered distribution of zakat after deduction by banks and other withholding agents. The Zakat and Ushr Ordinance of 1980 lists 11 types of assets from which zakat is deducted at source.
The deducted funds were transferred to the federal government which, after setting aside three percent for the Northern Areas (now known as Gilgit-Baltistan), divided them among the provinces on the basis of population. The Punjab received 55.14 per cent of the funds, though it contributed 63 per cent.
Under the new law, the funds would be administered by a provincial zakat council. Because the funds given by Punjab residents would remain in Punjab, the province will likely have more zakat money to spend on the needy.
Sixty per cent of zakat funds are meant for the poor, widows and the disabled under the Guzara Allowance, 18 per cent for educational stipends, eight per cent for madrassa students, six per cent for healthcare, four per cent for marriage assistance to women, and four per cent for social welfare/rehabilitation of the poor.
An official of the Zakat and Ushr Department said that there were 35 district zakat committees and 25,267 local zakat committees that distribute money to over 200,000 mustehqeen, or zakat beneficiaries. He said that it was a manual process in which disbursement frauds were hard to detect.
Published in The Express Tribune, December 23rd, 2011.
The chief minister has approved new legislation for the collection of zakat and ushr at the provincial level starting from next Ramazan, The Express Tribune has learnt.
Zakat and ushr became a provincial subject under the 18th Amendment. “The chief minister has approved a summary for the introduction of a new Zakat and Ushr Act,” an official said.
Previously, the Federal Zakat Council administered distribution of zakat after deduction by banks and other withholding agents. The Zakat and Ushr Ordinance of 1980 lists 11 types of assets from which zakat is deducted at source.
The deducted funds were transferred to the federal government which, after setting aside three percent for the Northern Areas (now known as Gilgit-Baltistan), divided them among the provinces on the basis of population. The Punjab received 55.14 per cent of the funds, though it contributed 63 per cent.
Under the new law, the funds would be administered by a provincial zakat council. Because the funds given by Punjab residents would remain in Punjab, the province will likely have more zakat money to spend on the needy.
Sixty per cent of zakat funds are meant for the poor, widows and the disabled under the Guzara Allowance, 18 per cent for educational stipends, eight per cent for madrassa students, six per cent for healthcare, four per cent for marriage assistance to women, and four per cent for social welfare/rehabilitation of the poor.
An official of the Zakat and Ushr Department said that there were 35 district zakat committees and 25,267 local zakat committees that distribute money to over 200,000 mustehqeen, or zakat beneficiaries. He said that it was a manual process in which disbursement frauds were hard to detect.
Published in The Express Tribune, December 23rd, 2011.