Zakat and its role in

Poverty Eradication:
Bangladesh Perspective

Prof. Dr Abu Bakr Rafique

Ex-Pro Vice-Chancellor
&
Chairman
Centre for Research and Publication
International Islamic University Chittagong
 Preamble:

From the very inception of human society Poverty has been

considered as an integral part of the society.

Every religion and social system has always paid special

attention to poverty eradication some way or other, applying
different techniques.

Zakat has been an integrated part of religion in all revealed

religions.

Al-Quran has mentioned some examples of Ismail, Jesus and

advice of the people of Banu-Israil to Qarun.
 Zakat in Islam

Its position is third in 5 pillars of Islam (after Iman & Salat)

The objective of Islam is to ensure justice, public welfare, equitable

distribution of wealth and to remove all sorts of harms from the
human society.

Any issue which contradicts to justice and leads to injustice and

violates the senses of compassion and intends for mafsadah (harm)
ignoring maslahah (public interest) cannot be considered as part of
Shariah.

Islam does not want that the poor class of the society shall have no
right over the wealth of rich class of the society. It has rather declared
that the poor class of the society has a legitimate right on the wealth
of the well to do class of the society.
 The philosophy and objectives of
Zakat
Not to allow the wealth be circulated among
a few hands (rich class).
Purification of wealth and the souls.
To let the wealth increase naturally.
To protect the wealth from calamities.
To gain Allahs pleasure.
To ensure that Zakat is not a charity towards the poor,it is
rather their right.

Al-Quran declares

(And [would assign] in all that they possessed a due share

unto such as might ask [for help] and such as might suffer
privation [51:19])

( and in whose possession there is a due share acknowledged

by them, for such as ask [for help] and such as are deprived
[of what is good in life] [Al-Quran:70:24-25])
 Poverty leads to infidelity

A Muslim cannot be poor by definition. Because poverty

leads a man towards a rebellion against the basic faith.

To ensure equitable distribution of wealth in the society

and overcome poverty Islam has declared a very efficient
rule and in built policy of social security system.

e.g. To realize a certain portion of surplus money from

the rich class of the society and to distribute among the
poor class of the society.

This policy is established clearly by the instruction of the

Prophet (SAW) to Muadh ibn Jabal (R) while sending him
to Yemen .
 Is there any effective institution of Zakat in
Bangladesh?

Bangladesh, being the overwhelming majority of its

population are Muslims(88%), it is still considered as one
of the developing countries, which means that it is a poor
country.

One of the main cause of this situation is that though a

Muslim country- the Zakat system has not been
institutionalized here.
 Is there any effective institution of Zakat in
Bangladesh? (Cont)

Payment of Zakat is not obligatory for the Muslims in

Bangladesh. So those who pay Zakat of their wealth, pay
on their own initiative and fearing Allah.

Many of them are not aware about the detailed system of

calculating Zakat and most of them are not aware about
the obligation of paying Ushr on their crops.

Poverty could be eradicated very easily and effectively

within a period of 10-15 years, through institutionalization
of Zakat in Bangladesh.
 Some Suggestions on
eradication of Poverty in
Bangladesh through proper
Zakat system.
 Possibility - 01
Present Situation
Ratio of Population Share in GNP
35% 15% share in GNP
45% 45% share in GNP
20% 40% share in GNP
Expected Situation (after 10 years)
Ratio of Population Share in GNP
35% Shall own 20% share in GNP
45% Shall own 45% share in GNP
20% Shall own 35% share in GNP
 Possibility 02: (deposits in banks)
According to a report published by Bangladesh
Bank, the total amount of money owned by the
accounts holders in different public and private
banks of Bangladesh, amounting to TK. 5 lacs and
above as on 31.12.15 was 6,03,173 crores. If 30%
of that amount is excluded for different
considerations (e.g. the amount owned by the non-
Muslims or specified for payment of loan etc.) the
total Zakatable amount will stand as Taka 4,22,221
crore (say 4,00,000 crore) and the amount
receivable as zakat on this amount is 10,000 (ten
thousand) crore Taka).
 Possibility 03: (Income Tax)
All the Income Tax (I.T.) payers are the rich class of
the society, Beginning from the minimum ceiling of
TK 250000 as surplus income I.T. is payable
The total I.T. realized in FY 2014-2015 was TK
1,36,724 Crore. If 6.6% of that amount i.e. 2.5% of
total surplus income is paid as Zakat, then this
amount stands as 9023 crore.If 50% is exempted as
the assets of those where Zakat is not payable then
total amount of Zakat would have not been less
than Tk.4,500 crore
 Possibility 04: (FDR)
As per a report published by Bangladesh bank the
total term Deposits (FDR) in the banking sector of
Bangladesh on 31st December 2015 was Taka
4,04,379 crore. Almost all of those who make term
deposit are solvent and the owner of Nisab
(minimum requirement for paying Zakat). If 50% of
that amount is identified as that are made by the
non-Muslims, and some other persons or
organizations those are not liable for payment of
Zakat, then the total zakatable amount will be
TK.2,02,189 (say 2,00,000 crore Taka) the zakat on
that amount @2.5% will be realized TK 5,000 crore.
 Possibility 05: (Ornaments)
The average size of the families in Bangladesh is
constituting of 5 members, and as such the total number
of families will be 32 million (say 30 million). If 20% of the
population is considered solvent and if one member in
each family is considered to be the house wife, then we
can say that 6 million house wives are considered as rich,
who possess zakatable amount of gold as ornament. If
each house wife possesses 100 grams of gold in average,
then the total amount of ornament being owned by the
house wives (minimun nisab is 85grms) in Bangladesh will
be 6,00,000 kilograms. 2.5% out of that amount or 15000
kilograms of gold will be identified as zakat. So at least
5000 crore taka may be collected from Zakat on ornament.
 Possibility 06:(Ushr on Crops)
According to report published by Bangladesh Bank
(BB)

Metric ton Ushr

Amount Year
(Million) Payable
Aman Paddy 2014 11.4
10%
Aush Paddy 2013 2.16
Boro Paddy 2015 30.45
Wheat 2015 13.03 5%
Corn 2015 1.37
 (Ushr on Crops) Cont
According to report published by Bangladesh Bank
(BB)
Calculation Price
Ushr Type
Item (mmt) (crore Taka)
1.14+.216=1.356
Aush+ Aman 10%
Paddy TK15000 4300
Boro 5% 1.522 TK15000
Wheat 5% .65 TK20000 1300
Corn 5% .68 TK10000 680
Total amount of Ushar/Nisf Ushr 6280

If 50% of this amount is deducted then the amount stands

at 3140 crore, say 3100 crore Taka.
 Conclusion:

In the recent times, the poultry and fishery firms are

considered as the growing industrial sectors in the country.
As these are being identified as business firms, so these
industries are also liable for payment of Zakat, payable on
total asset value (excluding capital investments
(construction) and loan amount if any).TK.100 crore may
also be realized as Zakat from this sector at the minimum.
 Conclusion: Cont
Based on Different possibilities of realizing Zakat money
as mentioned above, the total amount of Zakat realizable
from different heads shall not be less than 20,000-25,000
crore Taka. If this anormous amount is distributed among
the poor and needy class of the society then poverty may
be totally eradiated within a few years.

Here I would like to quote a verse from Dr. Muhammad

Iqbal. He Says:
Wwe are considered like the owl, , though Wisdom is ours

We are dying out of hunger, though Feast is ours,

 Du`a

May Allah give the Muslim Ummah the best of Tawfiq to

understand the beauty of Islam and to implement it in all
aspects of our life with sincerity. Ameen.
Thank You