A minimum Nisab fixed at Rs135,179 for Zakat during Ramadan 2024.
The Ministry of Poverty Alleviation and Social Security has unveiled plans for the deduction of Zakat for the Islamic year 1444-45 Hijri from bank accounts holding a minimum balance of Rs135,179 on the onset of Ramadan this year.
As per the ministry’s announcement, Zakat will be imposed on savings accounts and profit and loss sharing (PLS) accounts with balances equal to or exceeding Rs135,179. Account holders meeting this criterion will be required to pay 2.5% of Zakat on their total account balance.
Accounts with balances below Rs135,179 on the 1st of Ramadan will be exempted from Zakat deductions, according to the notification issued by the ministry.
Under the provisions of the Zakat and Ushr Ordinance 1980, no Zakat will be deducted if a bank account holds an amount lower than the threshold set by the ministry.
The ministry has urged all Zakat Collection Controlling Agencies (ZCCAs) to implement Zakat deductions accordingly.
The first day of Ramadan is anticipated to fall on March 12 this year, pending the sighting of the moon.
To qualify for Zakat liability, an individual’s wealth must surpass a specified threshold, known as the “Nisab”.
Those wishing to opt out of Zakat deductions from their accounts can do so by submitting a “Zakat exemption” form to their respective banks.
As a minimum Nisab fixed at Rs135,179 for Zakat during Ramadan 2024, the progressive increase in the Nisab for Zakat each year underscores the escalating inflation in the country.
From approximately Rs46,000 in 2020, the Zakat Nisab climbed to about Rs80,900 in 2021, surpassing Rs88,900 in 2022, and exceeding Rs103,000 in 2023. This significant surge indicates a tripling of the Nisab in just five years.
