ZANZAWE :38146 :220107 : zanzawe@zambia.co.zm Lusaka ...

When a person owns surplus Zakaatable wealth/assets to the value of Nisaab for the duration of one Islamic year, then such a person is
considered as a wealthy person. Therefore, he is obliged to disburse 2.5% of that surplus Zakaatable wealth to worthy recipients of Zakaah.
Surplus Zakaatable wealth refers to one’s Zakaatable assets from which current liabilities have been deducted.
Zakaatable Assets:
CASH: Savings, cash on hand, petty cash, cash in a bank account, saved
income from property investments, saved dividends from all sorts of
investments in lease assets, etc.
STOCK IN TRADE: Stock used for trading, investments in stock/asset
shares and commodities, agricultural produce for trade, etc.
Properties that are leased, fixtures & fittings, investments in leased
assets, etc are not considered as stock in trade. Properties purchased
for resale are classified as stock in trade. Stock in trade is calculated on
the selling price of the trader.
GOLD: Jewellery or items that have 50% or more gold content i.e.
12carat or more.
SILVER: Jewellery or items that have 50% or more silver content i.e.
12carat or more.
DEBTORS AND LOANS: Money that is owed to you (private loans),
trade debtors, etc.
There is no Zakaah on bad debts. A bad debt in
Shar’i terminology is that debt which the
creditor has no hope of retrieving. Neither
does the debtor intend repaying the debt,
nor does the creditor have any legal grounds
for claiming against this person.
However, if in the future, the creditor does
receive payment, he will have to pay Zakaah on
it. He will not pay for the past years.
LIVESTOCK: Livestock kept for breeding
purposes which graze freely for most of the year such as goats, sheep,
camels and cows.
Livestock for trade purposes will be regarded as stock in trade. There is
no Zakaah on livestock kept for breeding purposes in a feed-lot i.e. the
owner provides food for most of the year.
Non-Zakaatable Assets
Precious items not for sale such as precious stones, artwork, paintings,
antiques, stamp collection, etc.
Money or coin collection that is not legal tender
House, motor vehicles, furniture, household items, personal items
(besides gold/silver), fixtures and fittings, machinery, property on rent,
cellphone not for resale, etc
Haraam wealth such as interest
Non-Gold/silver jewellery such as platinum, titanium, 9 carat gold
jewellery, etc
Current Liabilities
Money which one owes to his creditor whether for private or business
purposes.
In the case of long term loans, only the payment of
the month in which Zakaah is taken out will be
deducted, not the entire loan. For example, a
person buys a car for K72million with 36
months to pay (@ K2million per month). He
will only deduct K2million from his wealth
when calculating his Zakaah. He will not
deduct the entire debt.
Some Ulama are of the opinion that in the
case of debts that are paid off in installments,
one has the option of deducting an entire year’s
installment as a liability. Thus, in the cited example, one
may deduct K24million (K2million x 12) from one’s
Zakaatable assets, before paying Zakaah on the
balance. Precaution would however dictate that
one implements the former view (that of
deducting only one month’s installment).
Money that one is required to pay for any
expenses incurred for the month such as
telephone/lights/water/rates, etc account,
domestic worker salaries, madrasah/school fees,
etc.
Nisaab (Financial Qualifying Threshold)
If a person owns a combination of the above mentioned Zakaatable
wealth, then his Nisaab rate (financial qualifying threshold) would be the
value of 612.36g of silver (200 Dirhams)
Therefore, if his Zakaatable assets collectively amount to the value of
Nisaab or more, then he will be liable to pay Zakaah.
Evaluation of Gold
Zakaah is not due on items where the gold content is less that 50% i.e.
12carat
Zakaah is dues on 24, 22, 18, 14 & 12 carats of gold.
Establish whether the items fall within the above criteria.
Establish the weight of all the Zakaatable gold items.
Find out the price of gold per gram.
Note: The value of gold or silver must be taken on the date when one’s
Zakaah year ends.
Multiply the total grams of Zakaatable gold items with the value of gold
per gram.
2.5% of the total kwacha or dollar value of the Zakaatable jewelley will
be the Zakaah due.
Same method should be followed for silver.
Miscellaneous
The Zakaah donor should dispose of his
Zakaah himself to a worthy recipient. However,
if he does not know of any worthy recipients,
or is unsure, then he may appoint an agent to
dispose of it on his behalf.
Any agent appointed to disburse Zakaah will be
the agent of the Zakaah donor. Therefore, until
the agent does not disburse the Zakaah to a worthy
recipient, the Zakaah will not be discharged. Furthermore, if the agent
misappropriates the funds then the Zakaah will NOT be discharged. It is
therefore very important to make sure that such an agent is appointed
who is trustworthy and Allah fearing.
Furthermore, it is the duty of the donor to follow up from the agent
whether his Zakaah has been discharged or not.
Zakaah cannot be used for administrative purposes when distributing
Zakaah. However, Lillah or a special donation for this purpose could be
utilized. It is advisable that the Zakaah donor gives his appointed agent a
donation to cover costs involved in disbursing his Zakaah.
It is more rewarding to distribute Zakaah to a family member who is
eligible to receive Zakaah. However, one cannot give one’s Zakaah to one’s
parents, grandparents, children, grandchildren and spouse.
It is more rewarding to disburse your Zakaah locally then to send it
overseas.
The Zambia National Zakaah and Welfare Trust (ZANZAWE) is a an organisation that strives to facilitate the empowerment of needy Muslims through the efficient
collection and effective distribution of Zakaah. ZANZAWE’s Welfare Projects are designed to assist needy families and individuals with their short term poverty alleviation
requirements as well as their long term empowerment viz. educational, training and developmental needs in order to assist them in becoming financially self-sufficient.
ZANZAWE :38146 :220107 : zanzawe@zambia.co.zm Lusaka Zambia

RAMADHAAN 1432 / AUGUST 2011
PRICE OF GOLD
US Dollars $ Zambian Kwacha
PRICE PER TROY OZ $1,560 K7,800,000
PRICE PER GRAM $51 K255,000
PRICE PER TOLA $595 K2,975,000
ZAKAAH PAYMENT ON GOLD
US Dollars $ Zambian Kwacha
PER TROY OZ $39 K195,000
PER GRAM $1.28 K6,457
PER TOLA $14.88 K74,400
PRICE OF SILVER
US Dollars $ Zambian Kwacha
PRICE PER TROY OZ $36.40 K182,000
PRICE PER GRAM $1.18 K5,900
PRICE PER TOLA $13.77 K68,850
ZAKAAH PAYMENT ON SILVER
US Dollars $ Zambian Kwacha
PER TROY OZ $0.91 K4,550
PER GRAM $0.0295 K148
PER TOLA $0.35 K1,750
NOTE:
1 TROY OZ = 31.1035 GRAMS & 1 TOLA= 11.664 GRAMS
KWACHA/DOLLER EXCHANGE RATE : US $1=K5000
ALL GOLD/SILVER PRICES, KWACHA/DOLLER RATES AS AT 12/07/2011.
ALL FIGURES HAVE BEEN ROUNDED OFF AS A PRECAUTIONARY MEASURE.
PLEASE ADJUST THE RATES ACCORDING TO COMMODITY VALUES ON THE RESPECTIVE DATE WHEN PAYING ZAKAAH.
9ct GOLD CONTAINS 37.44% GOLD AND IS THEREFORE NOT REGARDED AS GOLD BUT AS AN ALLOY. ZAKAAH WILL NOT BE
IMCUMBENT UPON IT.
ZANZAWE :38146 :220107 : zanzawe@zambia.co.zm Lusaka Zambia