Lesson 2: Fundamental Teachings Of Quran
Alms giving/ Poor Tax (Zakat)
The word zakat is derived from an Arabic word ‘Zaka’ meaning “purification." It is one of the pillars of Islam. Zakat is an obligatory tax levied by Allah on the wealthy members of the Muslim community so as to take surplus wealth from them and give it to the destitute. Quran emphasizes the fulfillment of the divine formula of Zakat:
“Keep up the prayer and pay the poor rate.” (Baqara 2:110)In the above verse 2:26, Allah has promised that He will repay hundred fold in the hereafter what a believer spent in the way of Allah.“The parable of those who spend their substance in the way of Allah is that of a grain of corn; it grows seven ears and each ear has a hundred grain. Allah gives manifold increase to whom he pleases.” (2:26)
Islamic concept of Wealth:
Islam condemns the accumulation of wealth at any one place or in just a few hands. It should be circulated in the directions of the poverty stricken or indigent. Holy Quran contains severe warnings to those who pile up and hoard wealth and withhold zakat. In Surah Tauba, Allah warned that those who accumulate gold and silver and do not spend it in the way of Allah, will be branded with fiery hot gold and silver.
Zakat is the backbone of the economic system of Islam. It is for the welfare of the unprivileged. Zakat is the blessing of God for the giver as well as for the receiver, as it improves the economy of the nation. Zakat establishes a society on a humanitarian ground. There is vast difference between the Zakat-giving capitalist of Islam who is fighting against poverty, and the capitalist of Karl Marx whose business thrived on interest, based on looting, and creating problems for the poor.
If today the whole world followed the principle of zakat, all the financial problems, unemployment and poverty would vanish, thus reducing crime and frustration from society. Quran says
“Those who believe and do deeds of righteousness and establish regular prayers and charity will have their reward with their lord.” (2:277)Rate of zakat:
The amount of payment of zakat is fixed at a prescribed rate. Zakat is payable in cash, gold, silver, jewelry, property, crops, animals, minerals, agricultural lands and a variety of commercial goods.
- cash, gold, silver or jewelry:
If a person has a possession of 7.5 tolas of gold or 52.5 tolas of silver or currency of an equivalent value or commercial goods, it is his obligation to pay zakat @ 2.5 %. - Factories/companies:
The shareholders of the factories, companies or firms are also liable to zakat, if their annual amount falls within the prescribed rate given above. - Machinery/Industrial material:
The machinery of all types in factories and mills are exempt but their products and raw material will be liable for zakat.
Distribution of zakat:
The people who deserve zakat (to whom it should be paid) are listed in the following verse of Holy Quran:
"Alms are for the poor and the needy and those employed to administer the (fund); for those whose hearts have been reconciled to truth; for those in bondage and in debt; in the cause of Allah; and for the wayfarer."(9:60)
