Page 14 - Zakat & Waqf: Impact on Women and Community Development

4 | Zakat & Waqf: Impact on Women and Community Development
© Zakat & Waqf: Impact on Women and Community Development
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lunar year (Islamic Calendar/Hijrah). After a Muslim has paid for basic
requirements, family costs, outstanding debts, donations, and taxes,
zakat is paid on the remaining net amount. Every Muslim male or
female who owns money or goods worth at least the equivalent of 85
grammes of gold at the end of the Hijrah year is required to pay zakat
at a minimum rate of 2.5% (Qardawi, Y.A, 2000) .

There may be disagreements on the tax rate, the exemptions, and the
types of wealth that are zakatable. According to Islamic guidelines and
examples, zakatable assets are excess money or assets that are
susceptible to payment. For instance, some scholars believe that the
wealth of children and mad people is zakatable, while others disagree
(Kashif, M., Faisal Jamal, K. and Abdur Rehman, M, 2018). Some
scholars believe that all agricultural items are zakatable, while others
only allow for a certain kind. Debts may or may not be zakatable,
depending on who you ask. The distinctions between corporate assets
and jewels for women are comparable. Some demand a minimum to
be zakatable, while others do not. The disbursement of Zakat exhibits
the same kinds of variations (Kahf, M, 1989)

ECONOMIC CHARACTERISTICS OF ZAKAT
Muslim economists contend that zakat boosts productivity,
redistributes and reallocates income to the poor, reduces ostentatious
consumption by the wealthy, encourages investment, makes the best
use of ideal zakatable income, and raises aggregate demand. To
correctly use the public income for other objectives, zakat could be
used to aid those in need. As we already know, zakat is one of the
crucial elements in building a nation's economy since the money that
people own is widely distributed regardless of a person's status (Abdul
Ghafar Ismail, 2022).

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