What is Zakat? Distinguish between Zakat and Tax
The word Zakat
literarymeans purification. By purification is meant the purification of soul,
character, life and wealth. Purification thus covers all the aspects of human
life. Technically Zakat is a compulsory tax which is imposed on the wealthy
Muslim people for providing social justice to community. In Holy Quran there
are three words which have been repeatedly used for alms and charity for the
poor. There are Sadqat, Infaq and Zakat. The first two i.e. Sadqat and Infaq
are optional. The third one i.e. Zakat is compulsory tax on wealth of Muslim
members of the state alone. It is levied to attain the following objectives.
1) Purification
of Soul: Zakat purifies the soul of contributor from the evils of miserliness.
It makes them humble and God-fearing.
2) Healthy
growth of the Community: The payment of Zakat leads to the healthy growth of
the community. The amount collected through Zakat is spent for the uplift of
the less fortunate members of the society.
3) Mobilization
of resources: Zakat is the hub of Islamic public finance. It is the chief
source of income of the state which is spent for the greater benefit of the
society by the state and rooting out poverty.
4) Right of the
Poor: Payment of the zakat is the divine order. It is therefore the right of
the poor to get share from the wealth of the rich in a Muslim society.
5) Enemy of
hoarding: Zakat is levied on the hoarded wealth. Due to fear of God and the
fear of the Day of Judgment, the Muslims are supposed to declare their hoarded
wealth which is subject to zakat. Zakat therefore is the enemy of hoarding.
Difference
between Zakat and Tax
Zakat is
different from tax. The main differences between the two are as under.
1. Zakat has
religious sanctity behind it. A tax on the other hand is compulsory
contribution to the public authorities to cover the cost of services rendered
by the state for the general benefit of the people. There is no religious duty
involved in it.
2. Zakat is
levied only on the Muslim members of the society, where as tax is levied on the
citizens in proportion to their ability to pay.
3. Zakat is a
compulsory payment which must be paid by Muslims. Zakat is not remitted. Tax
though compulsory payment yet is remitable by the government.
4. In case of
Zakat the sources and the rates are fixed by Holy Quran and cannot be changed
by the government. Rates of taxes and their sources on the other hand can be
changed by the government from time to time.
5. The income
collected Zakat can only be spent on the specified items laid down by Holy
Quran. Taxes can however be spent on various requirements as determined by the
government.
6. Zakat is paid
to the needy, the poor and whose hearts are reconciled to truth. The revenue
collected from tax is spent for the general benefit of all its citizens.
7. Zakat is
levied on all types of goods even animals, gold and silver ornament etc. held
with individuals. Tax on the other hand is levied on the income earned from
various sources.
8. Zakat is
uncompromising enemy of hoarding. On the other hand tax is paid on the recorded
income. The hoarded wealth remains exampled from tax.
9. Zakat rate is
not variable, it is fixed while tax rate is variable not fixed.
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