Islam has made kindness, through Zakat, binding upon all those who embrace the faith. As one of the pillars of Islam, Zakat is a system to redistribute the wealth of the Muslims, thus increasing the flow of cash in the economy with a particular interest in the poor and the dispossessed Muslims.
Zakat is one way to show our gratitude to God, in return for the many bounties we have been blessed with. Zakat is a positive instrument in our life that shapes our soul towards feeling a deeper concern for our fellow men.
The literal meaning of the Arabic word Zakat means grow (in goodness) or purifying. The act of giving Zakat is purifying one’s wealth to gain God’s blessings for the wealth to grow in goodness.
With the vision of the best community (khaira ummah), Zakat is the major economic means that brings the Muslim society towards prosperity, security, and social justice.
Benefits of Zakat
- Purifies our soul from miserliness
- Leads us towards earning the pleasure of God
- Multiplies and purifies our existing wealth
- Promotes social well-being and welfare
- Improves the standard of living for the Muslim community
When To Perform Zakat
There are several conditions that should be observed for Zakat to be performed by an individual.
- Zakat is only applicable to the Muslim
- Zakat is applied only on wealth fully owned by the Muslim
- The wealth at any point in time (of the Hijrah year) must reach Nisab – an equivalent to the market value of 86 grams of gold
- The wealth above Nisab must be with the person for at least one (1) Hijrah year
Zakat on Business
In addition to the above conditions, the following are additional terms for Zakat to be applied on businesses:
- Compulsory for Halal assets only
- Compulsory for productive assets
- Intention to perform business (Urud at-Tijarah)
For further information on giving Zakat, kindly contact: