Sindh and Punjab at loggerheads over zakat collection!

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As the center is showing reluctance in transferring zakat collection rights to provinces under the 18th constitutional amendment, the Punjab has peeped into the matter saying it will collect zakat funds from the companies operating in Sindh with their head offices in Punjab, it has been learnt through knowledgeable sources.
Under the 18th constitutional amendment, the Sindh was supposed to get rights of collecting zakat funds in the province and distribute it amongst the poor. The funds collection rights empower the Sindh government to gather Rs 4 billion against its earlier share of Rs 400 million.
Interestingly, sources told Pakistan Today that the federal authorities had recently decided that zakat collection rights will remain with the federal government till 2015 against the 18th amendment.
Following the devolution of federal zakat and ushr ministry under the 18th amendment, the Sindh zakat administration was being established by the Sindh government. And, the zakat and ushr department had 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.
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 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 was 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.
Furthermore, the sources said, the Sindh government would continue the programme on the pattern of federal policy – provision of stipend to poor students of schools, colleges, universities and other educational institutions.
Besides, the regular budget for the students of Deeni Madaris will 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) will also be paid zakat – Rs 500 for primary to Matric, Rs 750 above Matric and up to BA or equivalent, and Rs 1,000 MA or equivalent and above.
For health, free medical treatment of deserving persons would be Rs 3,000 for indoor and Rs 2,000 for outdoor patients respectively. For weddings, Rs 10,000 zakat will be granted to a mustahiq woman as a one-time grant by the local zakat committee.
Furthermore, the sources added that Punjab was now insisting that it had the right to collect funds from the companies operating in Karachi and having their head offices in Punjab province. On the contrary, the Sindh government insists that it has the right to collect funds as the operations of these firms fall under its jurisdiction.

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