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Thursday, May 23, 2024

Government Sets Nisab for Zakat at Rs135,179

The government sets the Nisab for Zakat at Rs135,179 for the year 1444-45 A.H., impacting Zakat deductions from various financial accounts come Ramadan.

The Ministry of Poverty Alleviation and Social Security has announced the Nisab for Zakat for the year 1444-45 A.H. at Rs135,179. This figure will be used for the deduction of Zakat from various financial accounts, including savings bank accounts and profit and loss sharing accounts.

All Zakat Collection Controlling Agencies (ZCCAs) have been directed to deduct Zakat accordingly, and banks are required to provide a copy of the Zakat deposit return to the ministry after depositing the Zakat in the designated Central Zakat Account.

Ramadan Marks Deduction of Zakat

Come Ramadan, banks will initiate the deduction of Zakat for the year 1444-45 Hijri from accounts maintaining a minimum balance of Rs135,179. The Ministry of Poverty Alleviation and Social Security’s notification specifies that this deduction will apply to savings accounts and profit and loss sharing (PLS) accounts meeting the stipulated balance criteria.

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Accounts with balances below the designated Nisab on the first day of Ramadan will be exempted from Zakat deduction, as per the ministry’s directive. Those wishing to opt out of Zakat deduction from their accounts can submit a Zakat exemption form to their respective banks before the stipulated deduction date.

Inflation Impact on Zakat Nisab

The progressive increase in the Nisab for Zakat reflects the escalating inflationary trends in the country. Over the past few years, the Nisab has witnessed significant increments, indicating the economic challenges posed by rising inflation.

From approximately Rs46,000 in 2020 to over Rs135,000 in 2024, the Nisab has more than tripled, highlighting the financial strain experienced by individuals in meeting their Zakat obligations amidst economic fluctuations. This upward trajectory underscores the broader economic landscape’s impact on religious obligations and financial planning within the Pakistani context.