KARACHI: Following the devolution of Federal Zakat and Ushr Ministry under the 18th Constitutional Amendment, plans are underway to establish the Sindh Zakat Administration, Pakistan Today has learnt.
Sindh’s Zakat & Ushr Department has a forwarded a summary to the Law Department for vetting of the proposed legislation required for setting up the authority, as well as the approval of chief minister, sources told Pakistan Today.
Prior to the devolution of the Zakat ministry at the provincial level, the Central Zakat Administration (CZA) – set up at the federal level – managed the country-wide collection and distribution of alms.
The CZA had power over the provincial Zakat Councils (PZC) of each province; a District Zakat Committee (DZC) was set up in each district, Tehsil Zakat Committees (TZC) for each tehsil (or sub-division), and Local Zakat Committee (LZC) established to collect alms from each locality. Zakat money officially collected through banks and other agencies was deposited with the CZA, which released specified amounts from time to time to the PZCs. The major share of these funds was in turn passed on to LZCs through the DZCs. In this way, the actual disbursement of Zakat to the needy was carried out mainly by the LZCs, whereas payment to institutions such as hospitals, seminaries, welfare organisations, and needy students was done by the PZCs
After the establishment of the Sindh Zakat Administration, the province would itself be responsible for Zakat collection and distribution, sources said, explaining that Zakat is being charged only on eleven assets contained in the First Schedule of the Zakat and Ushr Ordinance-1980.
These assets include: saving bank accounts; notice deposit accounts and receipts; fixed deposit accounts and receipts; saving/deposit certificates accounts and receipts; National Investment Trust (NIT) units; Investment Corporation of Pakistan Mutual Funds Certificates; government securities on which the return is receivable by the holder periodically; securities including shares and debentures of companies and statutory corporations on which return is paid; annuities; life insurance policies and provident fund credit balances.
Ushr meanwhile is collected on compulsory basis at a rate of 5 percent of the produce from every land-owner, grantee, allottee, lessee, lease-holder or land-holder (except the one excluded from the definition of Sahib-e-Nisab). An individual farmer is exempted from Ushr if he is a “mustahiq” or if his produce is less than 948 kg of wheat or its equivalent in value.
Farmers have also been given the opportunity to assess Ushr on their own, but an LZC may also make their own assessment. An assessee has been allowed to reduce his Ushr liability by one-third if land was irrigated by tubewells and by one-fourth if irrigated by other means, sources explained.
Furthermore, sources said, the Sindh government would continue the programme on the pattern of federal policy – provision of stipends to poor students of schools, colleges, universities and other educational institutions -.
Besides, the regular budget for the students of Deeni Madaris would also be allocated at a rate of Rs 150 for Hifzo Nazira, Rs 375 for Mouqoof Aleh and Rs 750 for Daura Hadith. The students of Model Deeni Madaris and those affiliated with Pakistan Madrasah Education Board (PMEB) would also be paid Zakat – Rs 500 for primary to matric, Rs 750 above matric and upto BA or equivalent and Rs 1,000 MA or equivalent and above.
For health, ceilings for free medical treatment of deserving persons would be Rs3,000/- for indoor patients and Rs.2000/- for outdoor patients respectively. For weddings, Rs 10,000 Zakat would be granted to a Mustahiq woman as a one-time grant by the Local Zakat Committee.
The sources said that the process of formation of the Sindh Zakat Administration was underway and it would be done within a week or two.
