ZAKAT IN ISLAM

Islam makes it obligatory on every Muslim to pay Zakat, on their accumulated wealth. The money collected from this Zakat is to be distributed among the poor and needy. The Arabic word "Zakat" means both 'purification' and 'growth'. One of the most important principles of Islam is that all things belong to Allah (swt), and that wealth is therefore held by human beings in trust. Our wealth is purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth in our wealth.

Zakat is due on accumulated wealth that has been in the possession of a person for at least one year. There are rules on how to pay Zakat on each type of possessions, such as gold, animals, crops, shares and so on. A certain percentage of each type of these possessions is to be paid as Zakat. Note that the Zakat is taken from excess wealth that a person is accumulating and has had in their possession for over a year. It is not paid on income. Therefore, people who save nothing after covering their expenses with their income do not pay Zakat, and in fact may be eligible to receive Zakat money from others if their income does not cover all their needs.

The Zakat is to be distributed among people of the following categories, depending on need:

1) The Destitute: Those who don't have material possessions nor nor means of livelihood.
2) The Poor: Those with insufficient means of livelihood to meet basic needs.
3) The Indebted: Those who are in debt and have difficulty repaying it.
4) Stranded Traveller: The traveller who does not have enough money to complete their journey.
5) To Free Slaves: Zakat money is to be used to purchase slaves and free them.

6) New Muslims: Those who are new to Islam and require help to integrate themselves into the Muslims community.
7) In the Path of Allah: Zakat money can also be spent in the path of Allah. This can include many things, basically any project that helps Muslims or Islamic causes.
8) Zakat Workers: Those whose job it is to collect and re-distribute Zakat money get their salary from the Zakat money.

How Can Zakat Eliminate Poverty and Starvation?

If Islam was implemented in the world today, starvation would be eliminated from the planet within the first year. The Zakat due on agricultural products ranges from 5% to 10% of the produce. There is also Zakat due on various types of animals such as sheep, cows and camels. Imagine if 5%-10% of all agricultural production in the world, plus the required amounts on animals are distributed among the hungry and starving people of this world. The problem would be solved immediately. In the system we have today, some nations intentionally spoil a part of their agricultural production in order to maintain high prices for their produce. Can you see the difference between the system driven by human greed and the Islam which was imposed by Allah (swt), the most gracious and most merciful?

In addition, Islam can solve the problem of poverty. Consider the Zakat due on money. Zakat is due at 2.5% on money that has been in one's possession for over a year. This Zakat money should not only be distributed for immediate relief to the poor. It can also be given in the form of small business loans. For example, poor farmers can be given loans or even grants from this Zakat money to enable them to purchase the equipment and materials they need to lift them out of poverty. The same can be done for small business owners, or for the poor to set up small workshops or factories to lift them out of poverty once and for all. Within a few years, poverty would be eliminated or at least greatly reduced.

The obligatory Zakat imposed by Islam can easily solve the problems of poverty and starvation in the world. However, in addition to that, Islam greatly encourages Muslims to give extra charity. For example, the Prophet Mohammad (saw) once said that the person who sleeps full while his neighbour sleeps hungry is not a true believer. Islam also always encourages charity in all situations. For example, for the persons who are not able to fast in Ramadan, they are required to feed some poor people for each day they do not fast.