Indexation of Nisab of Zakah : indexation for inflation

Fatawa Question

[Question One] : Asalam Alikom Wa Rahmatoo Allah Wa Barakatooh, Regardying the book edited by you and entitled : Mawared al Dawlah al Maleiah fe al Mojtam’a alHadeth Mn Wejhata al Nathar al Islameiah.( “state financial resources in the modern society from an Islamic prospective) 2nd edition, (2000).Published by Islamic Development Bank, the IRTI section. Kindly find attached page Nr 87 of this book, which is written by Dr. Muhammad Awad. In number 5 of this page the author indicating that Zakat does not need indexation-as it is in taxes) since the Zakat (Islamic tax) are not only proportional with wealth, rather it is a percentage of the quantity base and not the base value. ! Pleas Dr. what does it mean: as % of the Kameiah and not from Qeemah (line nr. 3 of sentence 5) ??? Kindly advise... [Question Two] : hope you are O.k. I was anxious to receive your E-mail So,,,,, that’s Prof. what I wanted to ask you. If my deposit in the Islamic bank have reached to : 5000 $ (including Islamic interest), how then can I pay or take the 85 gram of gold of theses 5000-Isn’t’ this the in-kind method or am I wrong ???.. But if I need to see how much the 85 gram of gold equals in dollars to determine the Nisab, then this is not in-kind payment / method. The same for your example : how you have calculated 5 T.V set as Nisab out of 200 ? Please help me... [Question Three] 1-So paying in kind means from the same kind of assets: like If I have cash money, I pay my Zakat in terms of cash money If I have camels, I pay sheep....etc. of details If I have a company, I pay my zakat in cash money out of my net worth If I have shares, then I pay my Zakat in shares. If I m a woman and have many gold, so I pay Zakat in terms of gold. But what does the sentence that scholars have mentioned in their writings : choosing between paying in kind or in cash ? Does it mean the above mentioned cases for paying in-Kind ? Does it mean that for cases like livestock and corps only I can pay what equals their Zakat due amount in cash ?? 2-But in all of the previous above cases, I have to see if I’m obligated to pay Zakat (inter alia) by doing / calculating the Nisab that is based on Gold : that is to see how much 85 gram of gold equal in Dollar / Euro / Dinar, the day of payment 3-In your email Prof. You said on 5000 I have to pay 250, but I think it is 125 ?? 4-You make me confused with your sentences mentioned in your last email : then if my items are not gold I don’t use it and I don't need it at all. If Zakah were a given sum of gold, instead of a ration, or a ratio that is calculated at a different price than the current price of the item, evaluation would then only affect the actual amount I have to pay. I didn’t get what you want to say ? Salam

Fatwa

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Publication Date

2006-07-14

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

3

Data Type

Fatawa

Language

English

Record ID

BIM-787688

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