The Poverty Alleviation and Social Safety Division issued a notification on 21st April 2020 regarding Nisab of Zakat for 2020. The authority claimed that the Nisab has been set at PKR 46,329 for the year 2020.
The authority claimed that the 2.5 % zakat will be deducted from those Saving Accounts carrying more than PKR 46,329 balance. State Bank of Pakistan has issued a notification that the Banks and Financial Institutions will deduct 2.5% Zakat on all the Saving Accounts from the 1st day of Ramadan depends on the sighting of the moon.
There had been seen an increase of PKR 1,914 in this year’s Zakat Nisab due to the incremented prices of silver and gold. It is higher than the previous year which was PKR 44,415.
Nisab is estimated as per the prices of Gold and Silver. The amount gathered in the name of Zakat is divided among all the poor and the needy in Pakistan. According to sources, the Government attained PKR 17.7 Billion after the deduction of zakat from the bank accounts in three years 2015-2017 consecutively.
Zakat Implications:
- Saving Accounts more than PKR 46,329 balance
- Products maintained by Asset Management Companies
- Products maintained by Banks
- Products maintained by Financial Entities
Exemption:
- Those people who have an account balance less than the prescribed Nisab will be exempted from this deduction.
- Those people who have submitted Zakat Exemption certificate will be exempted
- Customers having current accounts will also be exempted from this deduction
The 2.5% deduction will be operational from 1st day of Ramadan, which will fall from the 25th of April 2020.