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Tuesday July 16, 2024

Ramadan 2023: Govt sets minimum Zakat Nisab

Zakat will be deducted on first of Ramadan from saving accounts, profit and loss sharing accounts and other similar accounts

By Web Desk
March 21, 2023
An undated image of a banker counting Pakistan rupee. — AFP/File
An undated image of a banker counting Pakistan rupee. — AFP/File

With only a few days left for Ramadan, the Ministry of Poverty Alleviation and Social Safety on Tuesday announced the minimum Zakat Nisab for the ongoing year.

Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having a minimum balance of Rs103,159 or above, on the first of Ramadan, the notification issued by the ministry read.

It should be noted that the Nisab was fixed at Rs88,927 last year.

Under the Zakat and Ushr Ordinance 1980, no Zakat would be deducted in case a bank account has a lesser amount than the value announced by the ministry, added the statement.

"All the Zakat Collection Controlling Agencies (ZCCAs) are requested to deduct the Zakat accordingly," it said.

The first of Ramadan will likely fall on March 23, this year, subject to the appearance of the moon.

To be liable for Zakat — which is one of the five pillars of Islam — one's wealth must amount to more than a threshold figure, termed the "Nisab".

Those who do not want a Zakat deduction from their accounts can submit a "Zakat exemption" form to their respective banks. 

The State Bank of Pakistan (SBP) has announced Friday (March 24) as a Bank Holiday for Zakat deductions.