Ramadan 2024: Nisab set at Rs135,179 for Zakat

On the first day of Ramadan this year, banks will deduct Zakat for 1444-45 Hijri from accounts having a minimum balance of Rs135,179, according to the Ministry of Poverty Alleviation and Social Security.

The ministry fixed the Nisab for Zakat in 2024 and stated that it would be applied to savings accounts and profit and loss sharing (PLS) accounts with a balance of at least Rs135,179 or more. Customers who meet the requirements would thus be required to pay 2.5% in Zakat on the whole amount in their account.

Accounts with balances less than Rs135,179 on the 1st of Ramadan will be exempted from Zakat deduction, read the notification issued by the ministry.

The ministry has said 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.

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

The first of Ramadan is expected to fall on March 12, 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 mounting Nisab for Zakat every year also indicates the rising inflation in the country as the Zakat Nisab was around Rs46,000 in 2020, about Rs80,900 in 2021, over Rs88,900 in 2022 and more than Rs103,000 in 2023, last year. In just five years, the Nisab has more than tripled.