Page 1 of 10

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 289

Exploring the Conditions for Zakat ability of Wealth

from the Contemporary Perspectives

Sheriff Muhammad Ibrahim1

Universiti Sains Islam Malaysia (USIM) Bandar Baru Nilai, Negeri Sembilan Malaysia

Abstract

Zakat system has played an important role in remodeling the socio-economic wellbeing of the

early and contemporary Muslim generations. Recently, many Muslim countries and communities

adopted the systematic zakat management in order to improve social welfare and help citizens

observed their religious obligation by giving zakat. Despite the records of successes made by this

countries, many studies considers changes in the concept of wealth of the contemporary age, and

suggests that issues related to systems of zakat collection needs to be revisited. This paper aims

at revisiting the traditional zakat collection systems with a view to accommodate contemporary

views in respect to zakat collection. The paper revisits the criteria of zakatability of wealth, the

nisab (rate), alhaul (paasage of a year), exempted properties from zakat, and conditions of

ownership. On nisab, the paper explores issues arising on deductible expenses and conditions of

growth and profitability. This paper employs a qualitative research method mainly using previous

literature and analytical deductions of the researcher. The result of the paper indicates that zakat

accommodates contemporary changes in the concept of wealth, and gives rooms for various

interpretations that will help in facilitation of zakat collection.

Introduction

Zakat is alms imposed on Muslims by Allah upon acquiring a minimum amount of wealth

called Nisab, which is to be given to a specific category of people called Asnaf. Zakat is the third

of the five major pillars of Islam and it is a divine act imposed by Allah on the rich Muslim,

which is to be carried out through their legitimate earnings to the less privileged (Sheriff 2015).

From the perspective of Fiqh, Zakat is a specific amount of explicit properties made compulsory

by Allah to be distributed among the people called Asnaf (Qardawi, 2006). This definition,

portrays that zakat is understood as a levy imposed upon Muslims upon acquiring certain amount

of wealth. The Quran and Sunnah further illustrate items on which zakat is to be imposed, and

the charge differs depending on the nature and source of wealth. The two sources also mention

some assets that are exempted from the zakat base. Thus, this paper focuses on topics related to

zakat collection including criteria for zakatability of wealth; the conditions of nisab; the

condition of alhaul; condition of the full right of ownership; and exempted assets from the zakat

base. In an attempt to find better systems of collection, the study discusses the issues regarding

nisab and deductible expenses; issues arising regarding alhaul; and the best methods of

determining the nisab in line with contemporary changes. This paper considers both the classical

Page 2 of 10

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 290

and contemporary views about the practices of zakat collection.

During of the Prophet, zakatable items were very familiar since the sources of wealth were well

known. Zakat is levied on camels, sheep, cows, goats, gold, silver, agricultural products and

trade goods (Qardawi 2006). A property exempted from zakat in the life of the Prophet includes

properties for personal use such as living house, clothes and furniture.

In the early Muslim epochs, the zakat collection was carried by the state as a tax imposed by

shariah and distributed among the needy (Marshal 1985). Zakat as an Islamic welfare system,

was not only seen as a mere spiritual charity, but was enforced on the power and autonomy of the

state so as to affirm the sustainability and the wellbeing of the community through redistributing

wealth (Sheriff 2015).

Lately, Muslim scholars have shown serious concern over the change in the concept of wealth as

it differs drastically from the traditional concept. They have been debating on the possibility of

ijtihad over the newly emerging fiqhi issues related to zakat collection and distribution (Haneef

and Mahmud 2011).

Other scholars concluded that inability of the zakat funds to serve as an effective fiscal tool

against poverty is mainly due to the inefficient zakat collection and distribution (Chapra 1992).

Among the major indications of fewer zakat funds observed by the scholars is the issue of

narrowing interpretation the lifetime of the zakat and its principles. This leads to limiting the

chances of application of ijtihad to enhance the methods of zakat.

For instance, in the state of Kano in Nigeria, zakat is only collected from the assets specifically

mentioned in the Quran and Sunnah and the collection exercises in Kano does not consider the

emergence of these transformed economic activities that in fact, generate much more revenue

comparatively.

The Criteria for Zakatability

Early jurists had looked at the application of zakat from the traditional sources and had identified

zakat as a duty imposed on all properties that are likely to grow or bring profit to the owner.

They concluded that only the natural growing assets could be subjected to zakat (Tabrizi 741 H).

Growth and profitability are further explained as; something that provides profit or benefits the

owner; something that grows surplus; newly acquired item like business for profitability; or the

livestock reproduction.

(Al- Kasani 1986) maintained, “The meaning of zakat is growth and growth in general does not

exist except there is a growing wealth. We do not mean that the wealth automatically grows, but

Page 3 of 10

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 06

July 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 291

we mean is that such wealth is prone to grow by any means, such as grazing, trading etc. Grazing

becomes the source of milk, reproduction and meat, while trading is the root of profits”.

It must be observed that this view may have negative effects on zakat collection in the corporate

sector. This is due to the cause that zakat will only be charged on the circulating wealth, and not

the fixed assets of the company.

Al-Shaukani (1250 H) maintained that zakat is legislated to help the poor and relieve them from

poverty without impoverishing the rich. And clearly this is done by taking from their surplus.

Therefore, if zakat is imposed on the wealth that does not grow, it is irrational, since zakat is paid

annually in addition to the living expenses.

It is clear, that the classical scholars were of the view that; assets meant for personal use, assets

that do not grow are not subjected to the obligation of zakat; and only growing, and profitable

assets are drawn to the category of Zakatable.

The implications of this view could be portrayed as following:

Items subjected to zakat are:

i. The key wealth types known at the time including;

livestock, inventory of trade, gold and silver

ii.Part of income concomitant to the major kinds of wealth or income, saved in form of wealth,

regardless of its sources

iii.Agricultural products

iv.Natural resources

Items exempted from zakat include:

i. Human skills and resources

ii. Income used for consumption

iii. Items meant for personal and family use such as houses, horses, furniture etc.

iv. Petty things not meant to be trade inventories such as laborers’ tools.

The Nisab (Rate)

Classical jurists considered the traditional sources of zakat to be the Quran and Sunnah. They

agree that there is no zakat imposed on any property, unless it reaches the nisab, laid by shariah.

The limit of nisab was institutionalized by the Prophet S.A.W. The Prophet determined nisab for

zakatability as follows: five camels and above; forty sheep and beyond 200, 2.5 for silver

dirhams and five wasq (653 kilograms) for grain.