Originally Posted by vassal

HER IS MY EFFORT REGARDING ZAKAT CONSIDERING ROSHAN'S NOTES AND SOME EFFORT OF MINE. PLZ COMMENT..............

ZAKAT
INTRODUCTION

QURAN AND SUNNAH

Metioned 82 times in quran in close association with prayers
“And establish prayers and pay zakat and bow with those who bow”
Surah Al-Baqarah
“And zakat expenditure are for poor and needy and for those employed to collect zakat, and for bringing hearts together, and for freeing slaves and captives, and those in debt, and for the cause of Allah and wandering traveller- an obligation imposed by Allah. And Allah all Knowing and Wise.”
Surah Tubah Ayat no. 60
I have been commanded to fight people until they testify that there is no god but Allah, establish prayers and pay zakat and if they do so their blood and property are guranteed on my behalf and their affairs rest with Allah
(MUSLIM)
Prayers carries us half the way to Allah (swt), fasting brings us to the door of his palace and alms procure us admission (Hazrat Umar bin Abdul Aziz)

ROLE IN SOCIETY
PURIFICATION OF SOUL AND WEALTH
“he will be saved from hell fire who is pious and righteous and gives his riches for the purification of his soul”
Surah Al-lail
HELPING THE POOR AND NEEDY
“verily, Allah has ordered Muslims to pay Zakat, that would be taken from the rich and given to the poor”
(MUSLIM)
SUPPORT OF ISLAM
“strive in the way of Allah (swt) with your wealth and with your life”
ECONOMIC IMPACT OF ZAKAT
Distribution of wealth and economic growth
Money supplied to poor and needy----------->increase in demands of goods and services------->increase in production-------->new jobs and employment opportunities-------->more demands of goods and services------->more room for investment------->economic growth
Freeing the poor from economic slavery and making them self-sufficient (fir-riqaab)
Muslims living in poor countries facing abject poverty and being exploited and rendered slaves by landlords, loan sharks, rich industrialists and multinational cooperations can be freed . Zakat can be given to them for training, equipment and material to start their own small businesses and enterprises. This would make them self sufficient and economy can grow
Zakat prevents bankruptcy (al-gharimun)
Social welfare (fe-sabelillah)
Education, medical care, social programs, refugees, political exiles, war, propagation and spread of islam
Zakat is universal in scope
Example
1% muslims in middle east has $800 billion in western banks deposited and earns $80 billion in profit every year (10%). A zakat by 2.5% on this money is about $20 billion dollars annually. This is the wealth of only 1% of muslim population of middle east. What would be impact of 1.25 billion muslims spread over the globe if they py their zakat.
Necessary contingency fund during depressed economic conditions- a saftey net to society
A way to end extreme poverty in muslim world
A recent study undertaken by the Islamic Development Bank, Jeddah, has some shocking revelations. Just five of its 56 member countries - Indonesia, Bangladesh, Pakistan, Nigeria and Egypt account for over half a billion (528 million) of the world’s poor with incomes below $2 a day or below their national poverty lines. All these countries except Nigeria have Muslims constituting over 95 per cent of their respective population. With another five countries - Afghanistan, Sudan, Mozambique, Turkey and Niger, they account for over 600 million of the world’s poor. Among IDB non-member countries with significant Muslim population are India at around 150 million and Russia at 28 million. A large percentage of Muslim population in these two countries is poor. The poverty in most Muslim countries is accompanied by growing tensions and conflicts and therefore, deserves immediate attention of the international community.
We can get rid of western aid with strings attached
HURDLES
1. Merely reduced to a ritual practiced individually
2. Practiced on ad hoc basis
3. Failure to have understanding of Hukms realted to zakat
4. No established system of implementing, collecting and distributing zakat
5. already paying so many taxes why zakat
RECOMMENDATIONS
1. Awareness and education
2. Establishment of an institution under the guidance of State Bank of Pakistan (ministry of zakat and usher already in place working on zakat and usher ordinance 1980) with same structure and effectiveness as FBR, IRS, EXCISE & TAXATION and CUSTOMS.
3. Evaluating new categories of wealth such as intellectual assests and other intangible assessts and including them in zakat network
4. The practice of zakat exemption on various financial instrumrnts which are zakatable under shariah should be stopped
5. Credible, cost-effective, loophole free, and accountable collection and disbursement of zakat
6. Subsistence allowance should be given only to those that are minors, disabled and most poor while others who are entitled to zakat should be given such an amount that is sufficient to start a project.