Federal Govt Issues Nisab Of Zakat For 2023
The Zakat Administrator-General has given the Nisab of Zakat in Pakistan Rs 103,159 for the Zakat year 1443-44 AH according to a release from the Ministry of Poverty Alleviation and Social Security.
No zakat deduction will be made at source if the amount credited to an account is less than this amount i.e. Rs 103,159 on the first day of Ramzan-ul-Mubarak 1444 AH, according to the ordinance of Zakat and Ushr, 1980.
The notification states that the first day of Ramzan has already been communicated as the “withdrawal date” which is expected to fall on March 23 or 24, 2023 for the withdrawal of the zakat from thrift accounts, profit-sharing accounts and losses and similar accounts with a balance from Rs 103,159. Bank checking accounts are exempt from this deduction.
On the first day of the holy month of Ramzan, banks and financial institutions deduct 2.5% zakat from amounts in excess of the said nisab.
Zakat applies to savings accounts and products operated by banks, wealth management companies and other financial institutions. Meanwhile, customers who have submitted a Zakat Exemption Certificate will not receive any deductions.
The amount under Nisab this year has increased from last year’s figure of Rs 88,927 in Pakistan. The increase is mainly due to higher gold and silver prices.
Zakat is applied to the accumulated amount equal to or greater than the value of 7.5 tolas of gold and 52.5 tolas of silver for a one-year holding period. The reference point or nisab is defined in terms of the value of the commodity that has a lower price value, namely money. The Zakat Nisab is set at the annual average value of the precious metal.