What is Zakat?
Firstly, what is Zakat? It is the mandatory act of allocating some amount of one’s own wealth for a greater good.
Objective
The main principle of Zakat is to provide the downward flow of wealth from individuals who possess it to individuals who need it. Furthermore, the act of Zakat assists the payers to be able to purify their personal assets and cleanse themselves. The individuals who fail to pay this compulsory charity will make one’s wealth and one’s own self-impure.
Zakat and Muslims
Zakat is a religious duty of all Muslims and one of the five pillars of Islam. Certainly, it is compulsory for Muslims with excess wealth. In the Holy Quran, this type of charity is mentioned alongside the prayer.
“And establish prayer and give Zakat, and whatever good you put forward for yourselves-you will find it with Allah” (2:110, Qur’an)
Who is the beneficiary?
Generally, you can give this type of compulsory charity to anyone who is involved into one of these 8 categories:
1. Poor
2. Needy
3. Slave
4. Revert
5. Debtor
6. Striving for God’s sake
7. Traveler in the path of Allah
8. Collectors of the compulsory charity (Amil)
Furthermore, Zakat is mandatory on the following commodities:
1. Gold
2. Silver
3. Currencies: It includes Cash-in-hand, Quasi Cash, Cash Receivables
4. Bank Balances, Sukuk, Funds, etc
5. Trade Articles: It can be anything that is for sale such as Commercial Goods, Livestock, Agricultural produce, etc
6. Livestock: It can be Camels, Cows and Goats that you own but are not for trade
7. Agricultural Produce: Examples include Food-grains, Fruits and Vegetables
8. Minerals: All minerals in solid, liquid or gaseous form
9. Treasures (Rikaz)
Social impact
Scholars state that proper distribution of compulsory charity could help to get rid of extreme poverty. Other than that, it cleanses an individual from greediness and selfishness. Furthermore, it promotes social harmony and also justice. For instance, in capitalistic economies, we could observe that the wealth accumulates into the hands of rich people. Hence, zakat is introduced to avoid such social disparity.
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