Government sets Zakat Nisab at Rs.179,689

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Table of Contents

1. Introduction
2. Details of the New Zakat Nisab
3. Zakat Deduction Process
4. Comparison with Previous Year
5. Exemption Criteria
6. Significance of Zakat in Islam
7. Conclusion

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1. Introduction

In a significant announcement, the government of Pakistan has set the Nisab-e-Zakat for the Islamic year 1445-46 A.H. at Rs. 179,689. This figure represents the minimum balance required in savings bank accounts, profit and loss sharing accounts, and similar accounts for Zakat deduction. The decision comes ahead of the holy month of Ramazan, with Zakat being deducted from qualifying accounts on the first day of Ramazan-ul-Mubarak, which falls on March 2, 2025.

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2. Details of the New Zakat Nisab

The government’s decision to set the Nisab at Rs. 179,689 for the year 1445-46 A.H. means that individuals with balances equal to or greater than this amount in their eligible accounts will be subject to Zakat deduction at a rate of 2.5%. Zakat, a form of almsgiving and one of the Five Pillars of Islam, will be automatically deducted from the qualifying accounts, ensuring that the process is seamless for account holders.

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3. Zakat Deduction Process

Zakat will be calculated at a rate of 2.5% of the account balance for individuals whose accounts meet or exceed the set Nisab. This deduction will take place on the first day of Ramazan, which is March 2, 2025. The Zakat collected through this system is intended to assist those in need, aligning with the Islamic principle of wealth distribution to support the poor and needy during the holy month.

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4. Comparison with Previous Year

This year’s Nisab of Rs. 179,689 marks an increase of Rs. 44,519 compared to last year’s Nisab, which was set at Rs. 135,179. This rise in the threshold is reflective of the current economic conditions and aims to ensure that only individuals with substantial savings contribute to Zakat, while others with lower balances are exempt from automatic deductions.

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5. Exemption Criteria

Accounts with balances below the Nisab threshold will be exempt from automatic Zakat deduction, in accordance with the Zakat and Ushr Ordinance of 1980. This means that individuals with savings under Rs. 179,689 will not have Zakat deducted from their accounts. The exemption ensures that the deduction is equitable, focusing on those who have sufficient wealth to contribute.

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6. Significance of Zakat in Islam

Zakat is a fundamental aspect of Islamic teachings, representing a form of worship and a social responsibility. It serves to purify wealth and redistribute it to those in need, ensuring that no member of society is left without basic necessities. The act of giving Zakat during Ramazan is particularly significant, as it aligns with the spirit of charity, compassion, and social justice that characterizes the holy month.

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7. Conclusion

The setting of the Nisab-e-Zakat at Rs. 179,689 for the Islamic year 1445-46 A.H. reflects the government’s efforts to align with Islamic principles while also considering the economic circumstances of the country. With this new threshold, millions of Muslims will be able to fulfill their religious obligation during Ramazan, contributing to the welfare of the less fortunate.

As the first day of Ramazan approaches, account holders are encouraged to review their savings to ensure they meet the Nisab threshold, if applicable, and understand the deduction process. The government’s decision reinforces the significance of Zakat in fostering a more equitable society, especially during the blessed month of Ramazan.