The Ministry of Poverty Alleviation and Social Security has declared the Zakat Nisab 2024. As per the announcement, banks will deduct Zakat from accounts with a minimum balance of Rs135,179 on the first day of Ramadan this year.
The Zakat, a religious obligation and one of the five pillars of Islam, will be applicable on savings accounts and profit and loss sharing (PLS) accounts with a balance of Rs135,179 or more. Account holders meeting this criterion will be required to pay 2.5% of their total account balance as Zakat.
Accounts with a balance less than Rs135,179 on the first day of Ramadan will be exempt from Zakat deduction. This exemption is in accordance with the Zakat and Ushr Ordinance 1980, which states that no Zakat will be deducted if a bank account holds less than the announced value.
The Zakat Collection Controlling Agencies (ZCCAs) have been instructed to deduct the Zakat accordingly. The first day of Ramadan, which is subject to the sighting of the moon, is expected to be on March 12 this year.
Account holders who wish to avoid Zakat deduction can submit a “Zakat exemption” form to their respective banks.
The increasing Zakat Nisab each year is indicative of the country’s rising inflation. The Zakat Nisab has seen a significant increase over the past five years, from around Rs46,000 in 2020 to more than Rs103,000 in 2023. This year, the Nisab has more than tripled to Rs135,179.
