Here are your brief notes on Wealth Tax (Zakat) under Islamic Law

Zakat must be levied on the following items:

1. Wheat, barley, dates and raisins.

(a) Zakat is obligatory on these if they reach a minimum weight of 847.3 kilograms.

(b) Translators’ note: For rates of zakat on these, refer, to Taudhih-al-Masa’il.

2. Gold and silver coins.

(a) Tax on these must be paid every year until their value falls below the taxable limits.

(b) The minimum taxable limit for gold is 75 grams (15 mithqal). The rate of zakat then changes in incre­ments of 15 grams (3 mithqal). Thus, if one has 87

grams of gold coin, be should pay zakat on the rate based on 75 grams, but if one has 91 grams, he should pay the rate based on 90 grams (75 + 15=90).

(c) The amount of zakat on gold is 1/45 of its amount according to the above rule. Thus, the zakat of 87 grams of gold is 1.875 grams. And that of 91 grams of gold is 2.25 grams.

(d) The minimum taxable limit for silver coins is 525 grams (105 mithqal). The rate of zakat changes in increments of 105 grams (21 mithqal) as explained in (b) above.

(e) The amount of zakat on silver is 1 /40 of its amount according to (d) and (c) above.

3. Camels, cows and sheep.

(a) Translator’s note: For rates of zakat on these, refer to Taudhih-al-Masa’il.

Uses of Zakat

1. Given to a poor person whose income or cash in hand is not enough to meet his own and his family’s expenses for an entire year.

2. Given to a needy person who is completely helpless and indigent?

3. Given to an agent of the Imam (peace be upon him) or an agent of the deputy of the Imam whose job is the collec­tion of zakat and its distribution to the Imam or to those who deserve receiving it. Translator’s note: This zakat is given to the agent for his personal use, e.g., such an agent, himself, is a recipient of zakat.

4. Given to those whose hearts can be influenced to incline to Muslims or Islam, such as non-Muslims who would be attracted to Islam or would help Muslims in a time of war if they are given proceeds from zakat.

5. to free slaves.

6. To repay the debt of one who cannot do so himself.

7. To be used in the way of Allah for works which are beneficial to the people, such as building mosques, schools or bridges?

8. To aid a traveller who is in need of help during his journey.

Zakat can be given to a person who cannot meet his own or his family’s annual expenses although he may have a house to live in or a means of transportation or other living essen­tials, provided that the loss of them would mean loss of his prestige and thus destroy his mode of living. If such a person needs these things, but doesn’t have them, zakat may be used to buy them.

A needy person, who is able to learn a profession, must do so and not continue to live on zakat. He may accept zakat while he is training, however.

It is not necessary to destroy a person’s prestige or self-image by telling him that the money one is giving him is zakat. One may present it as a gift with the intention of it being zakat. It is a necessary caution that zakat be not given to a person who commits major sins in public.

One cannot use zakat to meet the expenses of one whom he is responsible for, such as his parents or children. If they are in need and he does not provide for them, others may give them zakat.

Priority Uses for Zakat

1. It is recommended that the zakat paid on cows, sheep and camels be given to respectable and prestigious poor persons.

2. Those that have the highest priority in receiving zakat are:

(a) One’s (non-immediate) relatives.

(b) Learned persons and those who maintain their high Muslim ideals.

(c) Those who do not beg rather than those who do beg.

(d) Those whose special circumstances warrant receipt of zakat over others at that time.

Zakatul-Fitr

1. This zakat is obligatory for any person who is mature, sane, conscious and financially able at sunset on the last day of Ramadan to pay for him and his dependents. The rate is three kilograms (1 sa) of wheat, barley, raisins, rice or similar produce per person. It is also permitted to give the cash value of such items.

2. The fitrah (tax) of a guest who arrives at his host’s home before sunset (and remains after sunset) should be paid by the host.

(a) The fitrah of a guest who arrives after sunset is not obligatory for the host to pay, even if the guest was invited before sunset or if he breaks his fast in the host’s home.

3. Fitrah should be used in one of the eight ways designated for zakat.

(a) Fitrah should not be given to someone who would use it to commit a sin.

4. The proper amount of fitrah must be paid or set aside before one offers the festival prayer on Idtd-Fitr (see Ch. 6, sec. R).

(a) If one does not offer the festival prayer, he must pay zakatul fitr before noon of that day.