Ordinance XVIII of 1980 · 39 pages
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THE ZAKAT AND USHR ORDINANCE, 1980
CONTENTS
CHAPTER I
PRELIMINARY
1. Short title, extent, application and commencement
2. Definitions
CHAPTER II
ZAKAT
3. Charge and collection of Zakat
4. Secrecy of information
CHAPTER III
USHR
5. Charge and collection of Ushr
6. Mode of assessment and collection of Ushr
CHAPTER IV
ZAKAT FUNDS
7. Establishment of Zakat Funds
8. Utilization of Zakat Funds
9. Disbursements from Zakat Funds
10. Accounts
11. Audit
Page 1 of 39
CHAPTER V
ORGANIZATION AND ADMINISTRATION
12. Central Zakat Council
13. Administrator-General
14. Provincial Zakat Council
15. Chief Administrator
16. District Zakat and Ushr Committee
17. Tehsil, Taluqa or sub-divisional Zakat and Ushr Committee
18. Local Zakat and Ushr Committee
19. Vacancy, etc., not to invalidate acts or proceedings
19A. Members of Council and other Committees to be Muslims
20. Person to preside at meetings in the absence of Chairman
21. Power of supersession and removal
21-A. Vote of no confidence
22. Administrative orginazation
23. Certain persons to be public servants
CHAPTER VI
MISCELLANEOUS
24. Exemption
25. Certain tax concessions
26. Power to make rules
27. Power to call for information and issue directions
28. Indemnity and bar of jurisdiction
29. Removal of difficulties
29A. Dissolution and reconstitution of Committees
30. Repeal
FIRST SCHEDULE
SECOND SCHEDULE
Page 2 of 39
THE ZAKAT AND USHR ORDINANCE, 1980
1
ORDINANCE No. XVIII OF 1980
[20th June, 1980]
AN
ORDINANCE
to make provisions relating to the assessment, collection and disbursement of Zakat and Ushr
WHEREAS it is necessary to make provisions relating to the assessment, collection and
disbursement of Zakat and Ushr and matters connected therewith or incidental thereto;
AND WHEREAS Pakistan, being an Islamic State, must provide for the implementation of
Islamic precepts;
AND WHEREAS the Constitution of the Islamic Republic of Pakistan lays down that the
Muslims of Pakistan shall be enabled to order their lives, in the individual and collective spheres, in
accordance with the tenets of Islam ;
AND WHEREAS Zakat, including Ushr, is one of the fundamental pillars (arkan) of Islam;
AND WHEREAS the prime objective of the collection of Zakat and Ushr, and disbursements
therefrom, is to assist the needy, the indigent and the poor;
AND WHEREAS the rates of Zakat and Ushr, as also the purposes for the utilization of
Zakat and Ushr, are specified in Shariah;
AND WHEREAS Shariah enjoins all Muslims who are sahib-e-nisab to pay, and the State to
arrange for the proper collection, disbursement and utilization of, Zakat and Ushr, and also allows
such Muslims to disburse for the purposes authorized by Shariah the part thereof not collected by the
State;
AND WHEREAS the Constitution also provides, in Article 31, that the State shall
endeavour, as respects the Muslims of Pakistan, to secure, inter alia, the proper organisation of
Zakat;
AND WHEREAS the President is satisfied that circumstances exist which render it necessary
to take immediate action;
NOW, THEREFORE, in pursuance of the Proclamation of the fifth day of July, 1977, read
with the Laws (Continuance in Force) Order, 1977 (C. M. L. A. Order No. 1 of 1977), and in
exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate
the following Ordinance : —
1
This Ordinance has been applied to the-Provincially Administered Tribal Areas of the Province of Baluchistan, see Notification No. S.O. (TA-3/46/79,
dated 5-7-1980, see Gaz., of Baluchistan, Ext.. dated 5-7-1980 (Issue No. 152).
This Ordinance (The Zakat and Ushr Ordinance) has been applied to the Provincially Administered Tribal Areas of the N.W.F.P., by Notification No.
Legis : l(9)/70, vol, IV, dated 9-10-1980, see N.W.F.P.Gaz., Ext., dated, 13-10-1980, page 212.
This Ordinance has been applied to the Northern Areas, vide S.R.0.951 (1 )/91, dated 23-9-1991, see Gaz., of P., 1991. Ext. Pt. II, p. 2462.
Page 3 of 39
CHAPTER I
PRELIMINARY
1. Short title, extent, application and commencement. —(1) This Ordinance may be called
the Zakat and Ushr Ordinance, 1980.
(2) It extends to the whole of Pakistan, but 1[as regards payment and recovery of Zakat and
Ushr] applies only to Muslim citizens of Pakistan and a company, or other association of persons, or
body of individuals, whether incorporated or not, majority of the shares of which is owned, or the
beneficial ownership of which is held, by such citizens.
2
[(2A) The Federal Government may, by notification in the official Gazette, direct that this
Ordinance shall also apply to any other territories or areas specified in the notification, subject to
such exceptions and modification as may be so specified].
(3) In respect of a person who may believe that the whole or any part of the recoveries
effected from him in the manner laid down in this Ordinance are not according to his belief, such
recoveries shall nevertheless be made, but shall be deemed to be contribution to Zakat Fund on the
part of that person 1[:]
3
[Provided that—
(a) no Zakat or Ushr shall be charged or collected on compulsory basis in respect
of the assets or the produce of a person who, not less than thirty days
preceding the Valuation Date in the case of Zakat, and at any time before the
Valuation Date in the case of Ushr, files with the Deducting Agency, or with
the Local Committee in the case of Ushr, a declaration, or an attested copy
thereof, in the prescribed form, sworn by him before a magistrate, on Oath
Commissioner, a notary public, or any other person authorised to administer
oath, in the presence of two witnesses who identify him, to the effect that he is
a Muslim and a follower of one of the recognised fiqhs, which he shall specify
in the declaration, and that his faith and the said fiqh do not oblige him to pay
the whole or any part of Zakat or Ushr in the manner laid down in this
Ordinance ; and
(b) a declaration, or an attested copy thereof, filed as aforesaid in one Zakat year,
whether before or after the commencement of the Zakat and Ushr (Third
Amendment) Ordinance, 1983, shall continue to be valid for so long as—
(i) the declaration or copy, and the asset liable to Zakat to which it relates,
remain in the custody of the Deducting Agency ; or
(ii)
the person filing the declaration or copy continues to hold, in respect
of the land to the produce of which it relates, the same status as he held
at the time of filing the declaration, and the declaration or copy
remains in the custody of the Local Committee.]
_______________________________________________________________________________
1
Ins. and subs., by Ordinance No.LII of 1980, s. 2.
2
Ins. by the Finance Act, 1990 (Act No. VII of 1990) s.8.
3
Subs. by Ordinance No. XXVI of 1983, s. 2.
Page 4 of 39
1
[Provided further that, where for any reason Zakat or Ushr is collected on compulsory basis
from such a person and he does not wish to leave it in the Zakat Fund as saddaqah or khairat in the
name of Allah as a manifestation of the unity of the Ummah and claims refund, on the basis of a
declaration as aforesaid filed by him within the period specified in first proviso or within such
further period as may be prescribed, the amount so collected shall be refunded to him in the
prescribed manner.]
Explanation.—In this Ordinance, reference to Zakat deductible at source or to Ushr
realizable on compulsory basis shall be construed to imply a reference to contributions to Zakat
Fund also.
1
[(3A) The Federal Shariat Court may, on the application of any person, decide the question
whether a declaration such as is referred to in the first or second proviso to sub-section (3) made by
any person is valid according to the fiqh he professes to follow ; and, if the Federal Shariat Court
decides that the declaration is not valid, such person shall, without prejudice to any other action that
may be taken against him under anyother law, be liable to pay Zakat or Ushr, as the case may be, in
the manner laid down in this Ordinance.]
(4) It shall come into force on such date as the Federal Government may, by notification in
the official Gazette, appoint, and different dates may be appointed for different provisions of this
Ordinance.
2. Definitions.—In this Ordinance, unless there is anything repugnant in the subject or
context,—
(i) ‘Administrator-General’ means the person appointed as such under section 13,
and includes an officer authorised by him to exercise or perform any power or
function of Administrator-General under this Ordinance;
(ii) ‘annuity’ means the sum payable periodically, according to the annuity policy
conditions, to an annuitant during his life-time, or for a fixed number of years,
as the case may be, and includes the scheme of postal annuities as notified by
the Government;
(iii) ‘assets’ means assets liable to Zakat as provided in this Ordinance;
(iv) ‘atiyyat’ means voluntary donations to the Zakat Funds, otherwise than on
account of Zakat or Ushr, and includes sadaqat-e-nafilah ;
(v) ‘Central Council’ means the Council established under section 12;
(vi) ‘Chief Administrator’ means a person appoint as such under section 15, and
includes an officer authorised by him to exercise or perform any power or
function of Chief Administrator under this Ordinance;
_________________________________________________________________________________
1
Ins. by Ordinance No. LII of 1980, s. 2.
Page 5 of 39
(vii) ‘company’ means a company as defined in Companies Act, 1913 (VII of
1913) ;
(viii) ‘Deducting Agency’ means a bank, post office or other institution referred to
in the sixth column of the First Schedule ;
(ix) ‘Deduction Date’ means, in respect of the assets mentioned in the First
Schedule, the date or dates on which Zakat is to be deducted at source and
which is or are specified in the fifth column of that Schedule;
(x) ‘District Committee’ means a Committee constituted under section 16 1[or, in
the case of the Islamabad Capital Territory, the Islamabad Zakat and Ushr
Committee] ;
2
[(xa) ‘Division concerned’ means the Division to which the business of this
Ordinance stands allocated;]
(xi) ‘Government security’ has the same meaning as in the Securities Act, 1920 (X
of 1920) ;
1
[(xia) Institution” “means deeni madaris, educational, vocational and social welfare
institutions, public hospitals, charitable institutions and other institutions
providing health-care;]
(xii) ‘insurer’ means the State Life Insurance Corporation of Pakistan or Postal
Life Insurance ;
(xiii) ‘Local Committee’ means a Committee constituted under section 18 ;
(xiv) ‘locality’ means the area within the jurisdiction of a Local Committee ;
(xv) ‘maturity value’ means the sum payable, according to stipulated conditions,
on survival of the life assured to the specified age or to the end of the term of
the policy ;
3
[(xva) ‘nisab’, in relation to assets liable to Zakat, except agricultural produce and
animals fed free in pastures, means 612.32 grams of silver, or cash or gold, or
goods for trade, or any assets liable to Zakat under Shariah, the aggregate
value of which is equal to the value of 612.32 grams of silver, as notified by
the Administrator-General for each Zakat year or, in the case of a person
whose assets liable to Zakat consist only of gold, 87.48 grams of gold;]
(xvi) ‘prescribed’ means prescribed by rules ;
(xvii) ‘produce’ means gross agricultural, horticultural or forest produce ;
(xviii) ‘Provident Fund’ has the same meaning as in the Provident Funds Act, 1925
(XIX of 1925) ;
1
Added and ins., by the Finance Act, 1994 (Act No. XII of 1994), s. 8.
2
Ins. by Act No. LV of 2023, s.2.
3
Ins. by Ordinance No. LII of 1980. s.3.
Page 6 of 39
1
[(xix) “Provincial Council” means a Council constituted under section 14;]
(xx) ‘recognised Provident Fund’ means a Provident Fund recognised as such, by the
competent authority, under the Income Tax Ordinance, 1979 (XXXI of 1979) ;
(xxi) ‘return’ means income, howsoever described, accruing on an asset ;
(xxii) ‘rules’ means rules made under this Ordinance ;
2
[(xxiii) ‘sahib-e-nisab’ means a person who owns or possesses assets not less than nisab, but
does not include—
(a) the Federal Government, a Provincial Government or a local authority;
(b) a statutory corporation, a company or other enterprise, owned wholly,
directly or indirectly, by the Federal Government, a Provincial
Government, a local authority or a corporation owned by the Federal
Government or a Provincial Government, either singly or jointly with
one or more of the other three ;
(c) a subsidiary of a statutory corporation, a company or other enterprise
referred to in sub-clause (b) and wholly owned by it ;
(d) the National Investment (Unit) Trust ;
(e) an ICP Mutual Fund ;
(f) a recognised Provident Fund ;
(g) any Unit Fund maintained by the Defence Services, including the Civil
Armed Forces ;
(h) a Zakat Fund ;
(i) an institution, fund, trust, endowment or society___
(a) registered as a charitable organisation under the Societies
Registration Act, 1860 (XXI of 1860), or as a company under
section 26 of the Companies Act, 1913 (VII of 1913), or
registered or approved as a charitable or social welfare
organisation under any other law for the time being in force,
and
(b) approved by the Central Board of Revenue for the purposes of
section 47 of the Income Tax Ordinance, 1979 (XXXI of
1979);
1
Added by Act No.X of 1997 s. 2.
2
Subs. by Ordinance No. LII of 1980, s. 3.
Page 7 of 39
(j) a deeni madrasah registered as such by the Auqaf Department ;
(k) a mosque ;
(l) an orphanage registered as such under the law relating to orphanages ;
(m) a Workers Participation Fund established under the Companies Profits
(Workers Participation) Act, 1968 (XII of 1968); or
(n) amount of a party to a suit or case kept with or under the orders of a
court pending decision of the suit or case ;]
(xxiv) ‘security’ means any stock, share, scrip, debenture, bond, pre-organisation
certificate, or instrument commonly known as security;
(xxv) ‘share’ means a share in the share-capital of a company, or in any body
corporate established by or under a Federal law or a Provincial law, and
includes stock;
1
[(xxvi) ‘sub-division’ means a sub-division of a district as notified by the Provincial
Government ;]
(xxvii) ‘surrender value’ means the sum payable by an insurer on cancellation of a
life-insurance policy or annuity, according to stipulated terms and conditions,
at any time before maturity benefits become available;
(xxviii) ‘survival benefit’ means the amount payable according to life-insurance
policy conditions, during the currency of a policy, on survival of the life
assured to the specified date as stipulated in the policy;
2
[(xxix) ‘Taluqa Committee’ or ‘Sub-divisional Committee’ 3[or Town Committee]
means a committee constituted under section 17 ;
(xxixa) “Tehsil Committee” means a Tehsil committee constituted under section 17
or, in the case of the Islamabad Capital Territory, the Islamabad Zakat and
Ushr Committee;]
4
[(xxx) ‘Valuation Date’ means—
(a) in respect of assets liable to Zakat, the first day of the Zakat year ; and
(b) in respect of produce liable to Ushr, such date or dates as may be
prescribed or as may be notified by the Administrator-General or by a
Chief Administrator within his jurisdiction ;
for the evaluation of the assets or the produce for the purpose of this Ordinance ;]
1
Subs by the Finance Act 1994, (Act No. XII of 1994) s. 8.
2
Added by Act No. X of 1997,s. 2.
3
Ins. by Ordinance No.XXXV of 2002, s.2.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
4
Subs. by Ordinance No. LII of 1980, s. 3.
Page 8 of 39
(xxxi) ‘Zakat Fund’ means a Fund established under section 7 ; and
(xxxii) ‘Zakat year’ means year according to the Hijra calendar for which Zakat is
chargeable, commencing on the first day of Ramadhan-ul-Mubarak and
ending with the last day of the following Sha’ban-ul-Moazzam :
Provided that the first Zakat year shall commence with the com-
mencement of this Ordinance and end with the last day of Sha”ban-ul-
Moazzam, 1401 A. H.
CHAPTER II
ZAKAT
3. Charge and collection of Zakat.— (1) Subject to the other provisions of this Ordinance,
Zakat in respect of assets mentioned in the First Schedule shall be charged and collected, on
compulsory basis, for each Zakat year, at the rates and in the manner specified therein, and as may
be prescribed, from every person 1[who is on the Valuation Date, and has for the preceding Zakat
year been, sahib-e-nisab] :
Provided that where an asset mentioned in the First Schedule has been assigned by the person
owning or possessing it, in favour of another person, Zakat in respect of that asset shall be charged
and collected on compulsory basis as if the asset had not been so assigned [:]1
1
[Provided further that, if an asset was owned or possessed by a person on the Valuation Date
but is owned or possessed by some other person on the Deduction Date, the Zakat on such asset shall
be charged and collected from such other person on behalf of the person owning or possessing it on
the Valuation Date :
Provided further that, if a person proves in the prescribed manner to the satisfaction of the
Local Committee of the locality where he ordinarily resides that he was not a sahib-e-nisab on the
Valuation Date or was not in ownership or possession of assets of the value of nisab for the whole of
the preceding Zakat year, Zakat shall not be so charged and collected from him, or if collected shall
be refunded to him in the prescribed manner :
Provided further that no Zakat shall be charged and collected from the assets of a person who
died on or before the Deduction Date] 2[:]
2
[Provided further that no Zakat shall be charged or collected on compulsory basis in respect
of any of the assets mentioned in the First Schedule which—
(a) have been acquired against payment in foreign currency ; or
________________________________________________________________________
1
Subs. and added Ordinance No. LII of 1980, s. 4.
2
Subs, and added by Ordinance No. XLVI of 1984, s. 2.
Page 9 of 39
(b) are maintained in foreign currency and the return on which, and the value on
encashment, redemption or withdrawal which is payable in foreign currency]
1
[:]
1
[Provided further that the Federal Government may, by notification in the official Gazette,
exempt any class of bonds or certificates issued by the Federal Government or a statutory
corporation a company or other enterprise, owned, directly or indirectly by the Federal Government,
a Provincial government, a Local authority or a corporation owned by the Federal Government or a
Provincial Government, either singly or jointly with one or more of the other three, from deduction
of Zakat on compulsory basis.]
(2) In determining the amount to be collected as Zakat on compulsory basis, the value of an
asset on which Zakat is deductible at source may be reduced, to the extent and in the manner
prescribed, only on account of debts which have been—
(a) primarily secured by that asset ;
(b) used for the creation of an asset on which Zakat is deductible at source ; and
(c) obtained from the Deducting Agency having custody of the asset securing the
debt 2[* * *] and of the asset created under clause (b).
2
[(3) Where a person from whom Zakat has been deducted at source—
(a) proves that—
(i) he is not a Muslim, or
(ii) he is not a citizen of Pakistan, or
(iii) the amount deducted from him is more than what is due under this
Ordinance, either on account of an error apparent from the record, or
on account of reduction provided for in sub-section (2) not having
been duly allowed to him, or
(iv) he falls under any of the exclusions given in sub-clauses (a) to (n) of
clause (xxiii) of section 2, or
(b) proves, as laid down in the third proviso to sub-section (1), that he is not a
sahib-e-nisab or was not in ownership or possession of nisab for the whole of
the preceding Zakat year, or
(c) files a declaration such as is referred to in the second proviso to sub-section
(3) of section 1, which has not been challenged in the Federal Shariat Court
under-subsection (3A) of that section, and claims refund,
the amount so deducted or, as the case may be, the amount so deducted in excess shall be refunded
to him in the prescribed manner.]
(4) Where the recovery of Zakat deductible at source, in respect of any of the assets
mentioned in the First Schedule, falls into arrears, the Administrator-General may forward to the
Collector of the district concerned a duly signed certificate specifying the amount of arrears due and
the particulars of the person from whom due, and the Collector shall, on receipt of such certificate,
proceed to recover the amount so specified, as if it were an arrears of land revenue.
1
Subs. and added by the Finance Act, 1987 (Act No. VI of 1987), s. 11.
2
Omitted and subs. by Ordinance No. LII of 1980, s. 4.
Page 10 of 39
(5) A sahib-e-nisab may pay either to a Zakat Fund or directly to those eligible under Shariah
to receive Zakat so much of the Zakat due under Shariah as is not deductible at source under this
Ordinance, for example, that due in respect of assets mentioned in the Second Schedule.
1
[(6) Any amount deducted at source by the Deducting Agency from any person shall be
treated as payment of Zakat on behalf of such person or, in the case of a person referred to in sub-
section (3) of section 1, as contribution to Zakat Fund or Sadaqah or khairat in the name of Allah, as
the case may be, on the part of that person.]
4. Secrecy of information.— Any information furnished or collected in connection with the
deduction of Zakat at source under this Ordinance shall be treated as secret and shall not be used for
any other purpose, including the assessment or collection of any tax.
CHAPTER III
USHR
5. Charge and collection of Ushr.— (1) Subject to the other provisions of this Ordinance,
there shall be charged and collected, on compulsory basis, in such manner as is laid down in section
6, and as may be prescribed, from every land-owner, grantee, allottee, lessee, lease-holder or land-
holder (other than a person excluded from the definition of sahib-e-nisab) Ushr at the rate of five per
cent of his share of the produce, as on the Valuation Date :
Provided that if any plot of land is used principally for growing one crop and a small portion
thereof, not exceeding one-fourth of an acre, is used for growing another crop, Ushr shall not be
charged in respect of the produce of such small portion.
Explanation.— In this section and section 6, ‘land-owner’, ‘grantee’, allottee, ‘lessee’,
‘lease-holder’ and ‘land-holder’ shall have the same meaning as in the laws relating to land
administration and ‘land-holder’ includes a person in possession of any plot of land who has grown a
crop on such plot.
(2) An individual land-owner, grantee, allotee, lessee, lease-holder or landholder shall be
exempt from the compulsory levy of Ushr if—
(a) he is eligible under Shariah to receive Zakat ; or
(b) the produce from his land is less than five wasqs (— 948 kilograms) of wheat,
or its equivalent in value in the case of other crops liable to Ushr.
(3) The currency equivalent of five wasqs of wheat in value shall be such as may be notified
for each Zakat year by the Administrator-General.
(4) Ushr shall be the first charge on the produce.
(5) Ushr shall be collected in cash :
_________________________________________________________________________________
1
Subs. by Ordinance No. LII of 1980, s. 4.
Page 11 of 39
Provided that, where the produce consists of wheat or paddy, Ushr, at the option of the
1
[Provincial Council] may be collected in kind.
(6) A Sahib-e-nisab may pay either to the Local Zakat Fund or directly to those eligible
under Shariah to receive Zakat, so much of the Ushr due under Shariah as is not compulsorily
realizable under this Ordinance, for example, in respect of item 9 of the Second Schedule.
2
[6. Mode of assessment and collection of ushr.—(1) The Provincial Revenue Department
shall assess and collect Ushr in respect of a land-owner, guarantee, lessee, lease-holder or land
holder in the prescribed manner, and maintain the record containing such information for a crop
season as may be required for the purposes of this Ordinance.
(2) In the case of lease in force immediately before the commencement of this Ordinance, or,
after the commencement of the Finance Act, 1990, the liability of the lessor and lessee to pay Ushr
shall be equitably apportioned between them by the Tehsildar or, as the case may be, Mukhtiarkar.
(3) An assessee aggrieved by the assessment under subsection (1), or as the case may be, a
lessor or lessee aggrieved by the apportionment under sub-section (2), may, within thirty days of the
Provincial Revenue Department announcing the assessment, or, as the case may be, apportionment,
apply, in the prescribed form and manner to the 3[Deputy District Officer (Revenue)] for a revision
of the assessment or apportionment:
Provided that no such application shall be admitted unless the applicant has deposited into
the 4[District] Zakat Fund not less than fifty per cent of his liability as assessed or apportioned by the
Provincial Revenue Department.
(4) The 3[Deputy District Officer (Revenue)] may, at any time, either of his own motion or
on the application of an adult Muslim residing within his jurisdiction, make an order enhancing the
liability assessed under sub-section (1) or apportioned under sub-section (2):
Provided that no such order shall be made unless the person affected has been given an
opportunity of showing cause against it and of being heard.
(5) The 3[Deputy District Officer (Revenue)] to whom an application is made under sub-
section (3) or sub-section (4), or who takes up a matter under sub-section (4) of his own motion,
shall give his decision within a period not exceeding one month counted from the date on which he
receives the application or, as the case may be, so takes up the matter; and such decision shall be
final and shall not be questioned before any Court or other authority.
(6) The demand as determined under sub-section (1) or, as the case may be, under sub-
section (4) or sub-section (5), shall be paid by the assessee and collected by the Provincial Revenue
Department in such manner as may be prescribed and deposited into the 4[District] Zakat Fund.
(7) Where the recovery of Ushr compulsorily realizable under this Ordinance falls into
arrears, the Tehsildar or, as the case may be, Mukhtiarkar shall proceed to recover the amount so
specified as if it were an arrear of land revenue.]
1
Subs. by Act No. X of 1997 s. 3.
2
Subs. by the Finance Act 1990. (Act No. VII of 1990) s. 8.
3
Subs. by Ordinance No.XXXV of 2002, s.3.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
4
Subs. by the Finance Act, 1994 (Act No.XII of 1994) s. 8.
Page 12 of 39
CHAPTER IV
ZAKAT FUNDS
[7. Establishment of Zakat Funds. —There shall be established the following Zakat Funds,
1
namely, —
(a) a Central Zakat Fund to which shall be credited—
(i) the Zakat deducted at source;
(ii) the Zakat paid into it voluntarily including voluntary contribution
made by Pakistani citizens and other persons residing abroad;
(iii) the transfers, if any, from the Provincial Zakat Funds; and
(iv) the grants, atiyyat and any other receipts including voluntary
contributions made by Pakistani citizens and other persons residing
abroad;
(b) a Provincial Zakat Fund for each Province to which shall be credited__
(i) the transfers to it from the Central Zakat fund ;
(ii) the Zakat paid into it voluntarily ;
(iii) the transfers, if any, from the District Zakat Fund ;
(iv) the transfers, if any, for the Local Zakat Fund ; and
(v) the grants, atiyyat and any other receipts; and
(c) a District Zakat Fund for each District to which shall be credited,—
(i) the transfers to it from the Provincial Fund ;
(ii) the proceeds of Ushr to be deposited in the personal ledger account of
District Zakat Fund ;
(iii) the Zakat paid into it voluntarily ;
(iv) the transfers, if any, from the Local Zakat Funds ; and
(v) the grant atiyyat and any other receipts ; and
(d) a Local Zakat Fund for each Local Committee to which shall be credited —
(i) the Zakat paid into it voluntarily ;
(ii) the transfers to it from the District Zakat Fund ;
(iii) the transfer to it from the Provincial Zakat Fund; and
(iv) the grants, atiyyat and any other receipts.]
_________________________________________________________________________________
1
Subs. by Act No.X of 1997 s. 4.
Page 13 of 39
1
[8. Utilization of Zakat Funds.—The moneys in a Zakat Fund shall be utilized for the
following purposes, namely:—
(a) assistance to the needy, the indigent and the poor particularly orphans and
widows, 2[persons with disabilities.], eligible to receive Zakat under Shariah
for their subsistence or rehabilitation, either directly or indirectly through
deeni madaris or educational, vocational or social institutions, public
hospitals, charitable institutions and other institution providing health care :
Provided that the lists of the individuals to be assisted directly and of
the institutions through which assistance is to be given from a Zakat Fund
shall be prepared and maintained in such form and manner as may be
prescribed ;
(b) assistance to the needy persons affected or rendered homeless due to natural
calamities like floods and earthquakes and for their rehabilitation ;
(c) expenditure on the collection, disbursement and administration of Zakat and
Ushr ;
Provided that—
(i) the expenditure on the administrative Division and the Central Council
shall be met by the Federal Government ;
(ii) the expenditure on the administrative organization of a Chief
Administrator, the Provincial Council, and a District Committee shall
be met by the Provincial Government 3[:]
3
[Provided that where expenditure on the administrative
organization of a District Zakat Committee is not fully met by the
Provincial Govertement due to paucity of funds during a financial
year, the Central Zakat Council may provide supplementary funds not
exceeding two percent from within the limit specified in clause (iii)
and]
(iii) the funds not exceeding ten per cent approved in the budget shall be
retained in the Provincial Zakat Fund to meet such additional
expenditure of a Local Committee as may be approved by the Central
Zakat Council :
Provided also that the banking services and the services
connected with the assessment, collection or disbursement of Zakat
and Ushr realizable on compulsory basis under this Ordinance shall be
rendered free of charge, except that the Administrator General, in
regard to Ushr, may authorise payment of remuneration for any
specified services ;
(d) investment in any non-interest bearing instruments as it permitted under
Shariah ; and
(e) any other purpose permitted by Shariah.]
1
Subs. by Act No. X of 1997 s. 5.
2
Subs. by Act No. XXIII of 2026, s.2. (applicable only to the extent of ICT)
3
Subs. and added by Ordinance No.XXXVIII of 2002, s.2.
Page 14 of 39
1
[9. Disbursement from Zakat Funds.— (1) The Central Zakat Council shall prepare
budget for each financial year and may, from the Central Zakat Fund, make disbursements and
transfer funds to Provincial Zakat Fund in such form and manner as maybe prescribed and as would
help in ensuring satisfaction of the needs of the needy and the poor throughout the country as far as
possible, on a uniform basis.
(2) A Provincial Council may from the Provincial Zakat Fund make disbursements and
transfer funds to 2[the Personal Ledger Account of the] District Zakat Fund on the basis of
population in such form and manner as may be prescribed and as would help in ensuring satisfaction
of the needs of the needy and the poor throughout its jurisdiction, as for as possible, on a uniform
basis :
Provided that a Provincial Council may, in exceptional circumstances, transfer funds from
the Provincial Zakat Fund to the Central Zakat Fund.
(3) A District Committee may make disbursements and transfer funds 2[through crossed
cheques] from District Zakat Fund to a Local Zakat Fund or to an institution or incur other
administrative expenditure subject to such conditions as may be prescribed and may, whenever
directed by the Central Council, transfer any funds surplus to its needs to the Provincial Zakat Fund.
(4) A Local Committee may disburse or incur expenditure from the Local Zakat Fund
2
[through crossed cheques] as may be prescribed :
Provided that a Local Committee may, if so required by the Provincial Council or the District
Committee, transfer any funds surplus to its needs from the Local Zakat Fund to the Provincial Zakat
Fund or, as the case may be, District Zakat Fund surplus to its needs :
Provided further that the Central Council or Provincial Council or a District Committee shall
disburse Zakat through a Bank or a Post Office or any other financial institution as may be
determined by the Central Zakat Council in such form and manner as may be prescribed.]
10. Accounts.— 1[(1) The accounts of the Central Zakat Fund, a Provincial Zakat Fund, a
District Zakat Fund, and a Local Zakat Fund shall be maintained and operated, respectively, by the
Administrator-General, the Chief Administrator, the District Committee and the Local Committee, in
such form and manner as may be prescribed.]
(2) The records of the accounts of the Zakat Funds shall be preserved for such period, and
shall be made available for audit or inspection to such persons or agencies, and in such manner, as
may be prescribed.
1
[11. Audit.— (1) To carry out audit of the Central Zakat Fund annually or at shorter
intervals, the Central Council, and to carry out audit of a Provincial Zakat Fund annually or at
shorter intervals, the Provincial Council, shall request the Auditor-General of Pakistan and Local
fund audit to conduct the audit.
(2) To carry out audit of a District Zakat Fund within a Province annually or at shorter
intervals, the Provincial Council shall request the Auditor-General of Pakistan to conduct the audit.
(3) To carry out audit of the Local Zakat Funds within a district annually or at shorter
intervals, the District Committee shall request the Auditor-General of Pakistan to conduct audit of
the local fund.
(4) The audit performed by Auditor-General under sub-sections (1), (2) and (3) shall include
propriety audit.
_________________________________________________________________________________
1
Subs. by Act No. X of 1997 ss. 6, 7 and 8.
2
Ins. by Ordinance No. LIX of 2000,s.3.
Page 15 of 39
(5) The annual report of the Auditor-General on the Central Zakat Fund shall be laid before
the Majlis-e-Shoora (Parliament), that on a Provincial Zakat Fund before the Provincial Assembly
concerned, and that on a District Zakat Fund or a Local Zakat Fund before the 1[District Assembly]
concerned established under the law relating to local government.
(6) Nothing in this section shall be deemed to prevent—
(a) the Central Council from getting audited any of the Provincial, District or
Local Zakat Funds ;
(b) the Provincial Council from getting audited any of the District or Local Zakat
Funds within its jurisdiction ; or
(c) a Local Committee from getting its own Local Zakat Fund audited.
(7) Notwithstanding anything contained in the preceding sub-sections, the Auditor General
shall conduct annual audit of the Central Zakat Fund, the Provincial Zakat Fund, District Zakat
Funds and Local Zakat Funds including the accounts of a Deducting Agency or an institution
receiving Zakat.]
CHAPTER V
ORGANIZATION AND ADMINISTRATION
12. Central Zakat Council.— (1) The Federal Government shall, by notification in the
official Gazette, establish a Central Zakat Council to provide policy guide-lines for, and to exercise
general superintendence and control over matters relating to Zakat and Ushr, particularly the Zakat
Funds and maintenance of their accounts.
2
[(2). The Central Council shall consist of.—
(a) a Chairman;
(b) four persons to be nominated by the President, of whom three shall be Ulema
nominated in consultation with the Council of Islamic Ideology ;
(c) one person from each Province, to be nominated by the President ;
(d) two women, who shall not be less than forty five years of age, to be
nominated by the President;
(e) the Chief Administrators ;
(f) the Secretary to the Government of Pakistan in the Ministry of Finance ;
1
Subs. by Ordinance No.XXXV of 2002, s.4.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
2
Subs. by Act No. X of 1997, s.9.
Page 16 of 39
(g) the Secretary to the Government of Pakistan in the Ministry of Religious
Affairs, Zakat, Ushar and Minorities Affairs;
(h) the Secretary to the Government of Pakistan in the Ministry of Health ;
(i) the Secretary to the Government of Pakistan in the Ministry of Education ;
and
(j) the Administrator-General, who shall also be the Secretary General of the
Council.
(3) The Chairman of the Central Council shall be a person who is, or has been, a judge of the
Supreme Court of Pakistan, to be nominated by the President in consultation with the Chief Justice
of Pakistan.
(4) The Chairman and members of the Central Council, other than ex-officio members, shall
hold office during the pleasure of the President for a term of three years, and shall be eligible for
reappointment for another term.]
(5) The Chairman or a member, not being an ex-officio member, may, by writing under his
hand addressed to the President resign his office :
Provided that he shall continue to hold office until his resignation is accepted by the
President.
(6) Any vacancy in the office of Chairman or member, other than an ex-officio member,
shall be filled by the nomination, in accordance with sub-section (2) or sub-section (3), as the case
may be, of a person qualified to hold the office.
(7) The Chairman or the member nominated under sub-section (6) shall hold office for the
unexpired term of his predecessor.
1
[13. Administrator-General.—(1) For carrying out the purpose of this Ordinance, the
Secretary 2[of the Divison concerned], Government of Pakistan, shall perform the functions of the
Administrator-General under this Ordinance.
(2) The Administrator-General shall be the Chief Executive in respect of matters relating to
Zakat and Ushr and shall act under the general superintendence and control of, and in accordance
with the policy guidelines given by, the Central Council.]
1
[14. Provincial Zakat Council.—(1) In each Province, the Provincial Government shall, by
notification in the official Gazette, establish a Provincial Zakat Council, to exercise general
superintendence and control over matters relating to Zakat and Ushr, particularly the Zakat Funds in
the Province and the maintenance of their accounts, in accordance with the policy guidelines given
by the Central Council.
(2) The Provincial Council shall consist of—
(a) a Chairman ;
1
Subs. by Act No. X of 1997 s. 10 and 11.
2
Subs. by Act No. LV of 2023, s.3.
Page 17 of 39
(b) five persons, of whom three shall be ulema, to be nominated by the Governor ;
(c) two women, who shall not be less than forty-five years of age, to be
nominated by the Federal Government ;
(d) the Secretary to the Provincial Government in the Finance Department ;
(e) the Secretary to the Provincial Government in the Local Government
Department ;
(f) the Secretary to the Provincial Government in the Social Welfare Department
; and
(g) the Chief Administrator, who shall also be the Secretary of the Council.
(3) The Chairman of the Provincial Council shall be a person who is, or has been, a Judge of
a High Court, to be nominated by the Governor in consultation with the Chief Justice of the High
Court.
(4) The Chairman and members of the Provincial Council, not being an ex-officio member,
shall hold office for a term of three years and shall be eligible for re-appointment.
(5) The Chairman or a member, not being an ex-officio member, may, by writing under his
hand addressed to the Governor resign his office.
(6) Subject to sub-section (5) the Chairman or, as the case may be, a member shall continue
to hold office until his resignation is accepted by the Governor.
(7) Any vacancy in the office of Chairman or member, other than an ex-officio member, shall
be filled by the nomination, in accordance with sub-section (2) or sub-section (3) as the case may be,
of a person qualified to hold the office.
(8) The Chairman or the member nominated under sub-section (7) shall hold office for the
unexpired term of his predecessor.
(9) In the Islamabad Capital Territory, the functions of the Provincial Council shall be
performed by the Central Council].
1
[15. Chief Administrator.—(1) In each Province, for carrying out the purposes of this
Ordinance, there shall be appointed by the Governor, in consultation with the Federal Government, a
Chief Administrator.
(2) The Chief Administrator shall have the status and grade of, and be ex-officio, Member,
Board of Revenue and his tenure and other terms and conditions of service shall be such as may be
determined by the Provincial Government.
(3) The Chief Administrator shall act under the general superintendence and control of the
Provincial Council and perform, as the Chief Executive of the Council, such functions as are
assigned to him by or under this Ordinance.]
1
Subs.by Act No. X of 1997, s. 12.
Page 18 of 39
1
[16. District Zakat and Ushr Committee.—2[(1) In each district, a District Zakat and Ushr
Committee, in the Islamabad Capital Territory, the Islamabad Zakat and Ushr Committee and in
Karachi, Karachi City District Government Zakat and Ushr Committee shall be constituted by the
Provincial Council concerned.]
(2) The District Committee shall, subject to such guidelines as may be given by the Central
Council or the Provincial Council, —
(a) Oversee, generally, the functioning of administrative organization of Zakat
and, more particularly, the assessment of Ushr and atiyyat and the
disbursement and utilization of the moneys in the District Zakat Fund and the
Local Zakat Fund;
(b) for the purposes mentioned in clause (a), make plans for the district, in such
form and manner as may be prescribed;
(c) prepare and maintain accounts of the District Zakat Fund in such form and
manner as may be prescribed ;
(d) compile accounts of the Local Zakat Funds, for the district, in such form and
manner as may be prescribed;
(e) arrange, in the prescribed manner, audit of the Local Zakat Funds in the
district; and
(f) tender to the provincial Council advice on any matter specified by it.
Explanation.—In this sub-section and in the succeeding provisions of this Ordinance,
reference to “District Committee” shall be deemed to include a reference to the Islamabad Zakat and
Ushr Committee.
(3) The District Committee shall consist of.—
(a) a Chairman, who shall be non-official, the 2[District Officer (Revenue)] of the
district and two women from within the district who shall not be less than
forty-five years of age and one non-official member from each tehsil, taluqa
or sub-division in the district :
Provided that where the number of tehsil, taluqas or sub-divisions in a
district is less than five, the number of members other than the Chairman and
the women members shall be raised to seven :
Provided further that, in any district where there is a District Social
Welfare Officer appointed by the Government, the District Committee may
co-opt him as a member of the Committee, ex-officio.
1
Subs. by Act No. X of 1997, s.13.
2
Subs. by Ordinance No.XXXV of 2002, s.5.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
Page 19 of 39
(b) The District Zakat Officer, who shall also be the Secretary of the Committee ;
Explanation.—Subject to sub-section (7), the District Committees
existing before the 5th November, 1996 shall cease to function and new
District Committees shall be constituted under this section.
(4) The Chairman shall be nominated by the Provincial Council and the members shall be
nominated by the Provincial council in consultation with the Chairman :
Provided that the Chairman shall be an adult Muslim who ordinarily resides in the district
and the member from a tehsil, taluqa or sub-division shall be an adult Muslim who ordinarily resides
in that tehsil, taluqa or sub-division 1[:]
1
[Provided further that the Chairman and members of the District Committee shall be the
persons who are of good moral character and are not commonly known as persons who violate
Islamic Injunctions and are of financial integrity and do not engage in political activities.]
(5) The District Committee so constituted shall be duly notified by the Provincial Council
concerned.
(6) The Chairman and members of the District Committee, not being an ex-officio member,
shall hold office for a term of three years and shall be eligible for re-appointment :
Provided that in the event of delay in the constitution of the new Committee under sub-
section (3), the Provincial Council may ask a District Committee to continue to function for a period
not exceeding six months after the expiry of the term of its office.
(7) The Chairman or a member, not being an ex-officio member, may, by writing under his
hand addressed to the Provincial Council, resign his office.
(8) Subject to sub-section (7) the Chairman or, as the case may be, a member shall continue
to hold office until his resignation is accepted by the Provincial Council.
(9) Any vacancy in the office of chairman or member, other than an ex-officio member, shall
be filled by the nomination, in accordance with sub section (4), of a person qualified to hold the
office.
(10) The Chairman or member nominated under sub section (9) shall hold office for the
unexpired term of his predecessor.
(11) The District Committee shall hold meetings of the Committee at least once in every
three months.]
2
[17. Tehsil, Taluqa or Sub-divisional Zakat and Ushr Committee 3[or Town Zakat and
Ushr Committee].— (1) There shall be constituted.—
(a) a Tehsil or Taluqa Zakat and Ushr Committee in each tehsil or taluqa;
________________________________________________________________________
1
Subs. and added by Ordinance No. LIX of 2000, s.4.
2
Subs. by Act No. X of 1997, s.14.
3
Added by Ordinance No.XXXV of 2002, s.6.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
Page 20 of 39
Provided that, if the Provincial Council so directs in respect of any
sub-tehsil, a Tehsil Zakat and Ushr Committee may be constituted in the sub-
tehsil; and, where a Committee is constituted in a sub-tehsil, such Committee
and such sub-tehsil shall be deemed to be a Tehsil Zakat and Ushr Committee
and a tehsil, respectively, for the purposes of this Ordinance; and
(b) a Sub-divisional Zakat and Ushr Committee in each sub-divisional of the
district of Lahore and 1[a Town Zakat and Ushr Committee in each town of
Karachi City District Government, Karachi].
(2) The Tehsil Committee, Taluqa Committee or sub-divisional Committee shall, subject to
such guidelines as may be given by the central council, the Provincial Council or the District
Committee, —
(a) oversee assessment of Ushr and collection of Zakat, Ushr and attiyyat, and the
disbursement and utilization of the moneys in the Local Zakat Funds, by the
Local Committees in the tehsil, taluqa or sub-division;
(b) for the purposes mentioned in clause (a) make plans for the tehsil, taluqa or
sub-division, as the case may be, in such form and manner as may be
prescribed;
(c) compile accounts of the Local Zakat Funds for the tehsil, taluqa or
sub-division, as the case may be, in such form and manner as may be
prescribed; and
(d) tender to the District Committee advice on any matter connected with the
collection, disbursement or utilization of Zakat or Ushr.
(3) The Tehsil Committee, Taluqa Committee or Sub divisional Committee shall consist of
the 1[Deputy District Officer (Revenue)], two women members and six members to be elected, in the
prescribed manner, by the Chairmen of the Local Committees of the tehsil, taluqa or sub-division,
from amongst themselves;
Provided that, if there are more than two tehsil Committees or Taluqa Committee within the
jurisdiction of an 1[Deputy District Officer (Revenue)], he shall be a member of only such of the
Committees as the Provincial Council may specify and the Provincial Council may nominate the
Tehsildar or Mukhtiarkar of the tehsil or taluqa concerned, as the case may be, to be the member of
any other of the said Tehsil Committees or Taluqa Committees:
Provided further that the two women members shall be nominated by the District Committee
in consultation with the Chairman of the Tehsil, Taluqa or Sub-divisional Committee concerned and
shall not be less than forty-five years of age.
(4) The members of the committee shall elect one of their member to be the Chairman of the
Committee; and, if two or more persons secure an equal number of votes, the result of the election
shall be determined by drawing lots.
________________________________________________________________________
1
Subs. by Ordinance No.XXXV of 2002, s.6.( It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
Page 21 of 39
(5) The Tehsil, Taluqa or Sub-divisional Committee so constituted shall be duly notified by
the District Committee concerned.
(6) The Chairman and members of a Tehsil Committee, Taluqa Committee or Sub-divisional
Committee, not being an ex officio member, shall hold office for a term of three years and shall be
eligible for re-election.
(7) The Chairman or a member, not being an ex officio member, may by writing under his
hand addressed to the Tehsil Committee or, as the case may be, Taluqa Committee or, as the case
may be, Taluqa Committee or Sub-divisional Committee, resign his office.
(8) Subject to sub-section (7), the Chairman or a member shall continue to hold office until
his resignation is accepted by the Tehsil Committee or, as the case may be, Taluqa Committee or
Sub divisional Committee.
(9) Any vacancy in the office of Chairman or member, other than an ex-officio member, shall
be filled by the election, in accordance with sub section (3), or, as the case may be, sub-section (4),
of a person qualified to hold the office.
(10) The Chairman or member elected under sub-section (9) shall hold office for the
unexpired term of his predecessor.]
[18. Local Zakat and Ushr Committee. — (1) A Local Zakat and Ushr Committee shall be
1
constituted for,
(a) each revenue estate in settled rural area;
(b) each deh or village in non-settled rural area; and
(c) each ward in urban area :
Provided that, if in the opinion of the Provincial Council the population of a
revenue estate, deh or village is too large, or too small, to have one local Zakat and
Ushr Committee, such revenue estate, deh or village may, if too large, be divided into
two or more localities, or if too small, grouped with any other revenue estate, deh or
village to form one locality, and where a revenue estate, deh or village is so divided
or grouped after the constitution of a local Committee that it covers a population of
ten thousand persons the Provincial Council may make such consequential orders as
may be necessary for the purposes of this Ordinance.
Explanation. — In this sub-section.—
(a) “urban area” means area within the local limits of a Municipal Corporation,
Municipal Committee, Cantonment Board or Town Committee;
(b) “rural area” means area other than urban area;
(c) “settled rural area” means rural area for which revenue settlement record
exists;
(d) “non-settled rural area” means rural area other than settled rural area ; and
1
Subs. by Act No. X of 1997, s. 15.
Page 22 of 39
(e) “ward” means a distinct and compact locality the population of which does
not exceed ten thousand persons approximately.
(2) The Local Committee shall, subject to such guidelines as may be given by the Provincial
Council and the District Committee or the Tehsil, Taluqa or sub-divisional Committee.
(a) determine istehqaq separately for—
(i) subsistence allowance;
(ii) rehabilitation, either directly or indirectly through deeni madris,
educational, vocational and social welfare institutions;
(iii) treatment through public hospitals, charitable institutions and other
institutions providing health care; and
(iv) any other purpose as may be permitted by Shariah;
(b) collect voluntarily Zakat, Ushr and attiyyat and deposit the moneys in the
District Zakat Fund;
(c) prepare and maintain accounts of the Local Zakat Fund in such form and
manner as may be prescribed; and
(d) tender to the Tehsil, District Committee advice on any matter connected with
collection, disbursement and utilization of Zakat, Ushr and attiyyat.
(3) The Local Committee shall consist of nine members, of whom two shall be Muslim
women who are not less than forty five years of age selected by the residents of the locality in the
manner specified in sub-section (4).
(4) The District committee shall constitute a team of three or more persons including at least
one gazetted officer, one aalim-e-deen and one member of the District Committee to organize a
public gathering of the adult Muslims, teachers and ulema residents of a locality and call upon them
to select, in the prescribed manner, seven adult Muslims residing in that locality who possess
Secondary School Certificate and are known to be pious and who offer five times prayer daily, and
have sound moral and financial integrity and not engaged in political activity :
Provided that a person who is a member of a team constituted for the selection of members of
a Local Committee shall not be eligible to be a member of such Local Committee and except in the
case of such Local Committees in the Islamabad Capital Territory as may be notified by the
Administrator-General, a person who is a salaried employee of Government or of a local authority
otherwise than as Pesh Imam of a local mosque or a teacher of a local school, or of a corporation set-
up owned or controlled by Government shall not be eligible to be member of a Local Committee :
Provided further that, where in a district the number of Local Committees is so large that the
members of the District Committee cannot be put on all the teams constituted for the selection of
members of Local Committees in the district, the District Committee, may, at its discretion,
nominate any other non-official person of the district to represent it on the said team:
Page 23 of 39
Provided further that the team constituted by the District Committee shall organize a separate
gathering of the adult Muslim female residents of the locality and call upon them to select, in the
prescribed manner, two Muslim women residing in that locality who are known to be pious and who
enjoy their trust to be members of the Local Committee.
(5) The members of a Local Committee shall elect one of their members, being a person who
possesses Secondary School Certificate and who offers prayer five times during a day regularly and
observes the fast throughout Ramadhan-ul-Mubarak according to the injunctions of Islam, to be the
Chairman of the Local Committee, and if two or more persons secure an equal number of votes, the
result of the election shall be determined by drawing lots.
(6) The Local Committee so constituted shall be duly notified by the District Committee
concerned.
(7) Any adult Muslim resident of a locality who is aggrieved by the conduct or the result of
the proceedings for the selection of the members, or the election of the Chairman, of the Local
Committee concerned may prefer an appeal to District Committee:
Provided that the District Committee shall not grant any injunction or make any interim
order, including a stay order, during the period an appeal is pending.
(8) The District Committee to which an appeal under sub-section (9) is preferred shall decide
the appeal with in such time as may be prescribed; and the decision of the District Committee shall
be final and prescribed, and the decission of the District Committee shall be final and shall not be
called in question before any court or other authority.
(9) The Chairman and members of the Local Committee shall hold office for a term of three
years and shall be eligible for re-election or re-selection as the case may be :
Provided further that the District Committee may, in consultation with the Federal
Government, remove a Chairman or a member or the Local Committee from his office and nominate
another person as Chairman or, as the case may be, a member for the unexpired term of his
predecessor :
Provided also that a Chairman shall not be eligible to hold office for more than two
consecutive term of three years each :
Provided further that the District Committee may, in the event of delay in the constitution of
the new Local Committee, ask a Local Committee to continue to function for a period not exceeding
six months after the expiry of term of its office.
(10) The Chairman or a member may by writing under his hand addressed to the District
Committee, resign his office.
(11) Subject to sub-section (1) the Chairman or, as the case may be, a member shall continue
to hold office until his resignation is accepted by the District Committee.
(12) Any vacancy in the office of Chairman or member shall be filled by election or selection
of a person qualified to hold the office, in accordance with the provisions of sub-section (4) or, as the
case may be, sub-section (7).
Page 24 of 39
(13) The Chairman, or the member elected or selected, as the case may be, under sub-section
(12), shall hold office for the unexpired term of his predecessor.
(14) All Local Committees existing before the 5th November, 1996, shall cease to function
from that date.]
1
[19. Vacancy etc., not to invalidate acts or proceedings.—Notwithstanding anything
contained in this Ordinance, no act or proceeding of a Council or committee established or con-
stituted under this Ordinance shall be invalid by reason only of the existence of a vacancy in, or
defect in the constitution of, such Council or Committee]
1
[19A Members of Council and other Committees to be Muslims.—(1) All the members of
the Central Council, Provincial Council and other Committees shall be Muslim and where the holder
of an office cannot become a member by reason of his not being a Muslim, the President in case of
the Central Council, the Governor in case of Provincial Council and Provincial Council in the case
of District Committees shall nominate a Muslim official member in his place.
(2) Except in the case of Islamabad Capital Territory, a person who is a salaried employee of
Government or of a local authority, otherwise than a Pesh Imam of a local mosque or a teacher of a
local school or of a corporation set-up, owned or controlled by the Government shall not be eligible
to be a member of a Committee constituted under section 18.]
20. Person to preside at meetings in the absence of Chairman.—(1) If the office of
Chairman of a Council or Committee established or constituted under this Ordinance is for the time
being vacant, or the Chairman is absent from a meeting of the Council or Committee, the meetings
thereof or, as the case may be, the meeting from which the Chairman is absent, shall be presided
at—
(a) in the case of the Central Council, by the Administrator-General ;
1
[(b) in the case of the Provincial Council, by the Chief Administrator;]
(c) in the case of a District Committee, by the 2[District Officer (Revenue)] ;
1
[(d) in the case of a Tehsil, Taluqa or Sub-divisional Committee, by the ex-officio
member, that is, 2[Deputy District Officer (Revenue)] or, if the ex-officio
member is himself the Chairman of the Committee, by the member elected by
the members present; and]
(e) in the case of a Local Committee, by the member elected by the members
present [:]3
3
[Provided that in case of temporary disability of the Chairman,
District Committee, the 2[District Officer (Revenue)] shall perform the
functions of such Chairman.]
1
Subs. and added by Act No. X of 1997, ss. 16,17 and 18.
2
Subs. by Ordinance No.XXXV of 2002, s.7.(It shall come into force at once except in Islamabad Capital Territory where it shall come into force on
such date as the Federal Government may, by notification in the Official Gazette, specify).
3
Subs. and added by the Finance Act, 1994 (Act No. XII of 1994), s. 8.
Page 25 of 39
21. Power of supersession and removal.— 1[(1) If the 2[Provincial] Council, in the case of a
District Committee, and the District Committee in the case of a Local Committee, is of the opinion
that a Committee constituted under this Ordinance—
(a) is unable to discharge or persistently fails in discharging its duties ; or
(b) is unable to administer its affairs ; or
(c) acts in a manner contrary to public interest ; or
(d) otherwise exceeds or abuses its powers ;
(e) has a majority of members who are not pious Muslims or who are engaged in
political activity,
The 2[Provincial] Council or, as the case may be, the District Committee may, by a
notification, declare the concerned Committee to be superseded for such period not exceeding one
year as may be specified in the notification :
Provided that the period of supersession may, if the 2[Provincial] Council or the District Committee
considers it necessary to do so, be extended, beyond a period of one year.]
(2) When a 2[declaration is made] under sub-section (1) in respect of a Committee,—
(a) the persons holding office as Chairman and members of the Committee to which the
resolution relates, shall cease to hold office ;
1
[b) all functions of the District Committee shall, during the period of supersession, be
performed by an Administrator appointed by the 2[Provincial] Council and in the case
of a Local Committee such functions shall be performed by the Administrator
appointed by the District Committee; and]
(c) before the expiry of the period of supersession, elections shall be held and selection
or nominations made in accordance with the provisions of this Ordinance to
reconstitute the Committee.
(3) 2[Provincial] 1[Council, in the case of District Committee, and the District Committee, in the case
of Local Committee,] is of the opinion that the Chairman or a member of a Committee constituted under this
Ordinance—
(a) was at the time of his selection, election or nomination —
(i) not a 3[pious] Muslim ;
(ii) not an adult ;
(iii) not a resident of the area within the jurisdiction of the Committee ;
(iv) an undischarged insolvent ; or
1
Subs.by the Finance Act, 1994 (Act No. XII of 1994), s. 8.
2
Subs. by Act No. X of 1997 s. 19.
3
Ins. by Ordinance No. VII of 1983, s. 5.
Page 26 of 39
(v) not of sound mind ; 1[or]
1
[vi) engaged in political activity]
(b) has been, during the period of three years preceding the date of his selection, election
or nomination,
(i) ordered to execute a bond under section 108, 109 or 110 of the Code of
Criminal Procedure, 1898 (Act V of 1898) ; or
(ii) convicted for an offence involving moral turpitude ; or
(iii) declared goonda under the law relating to the control of goondas ;
(c) has, after his selection, election or nomination, incurred any of the
disqualifications referred to in sub-clause (i), (iii), 1[(iv), (v) or (vi)] of clause
(a), or sub-clauses (i), (ii) or (iii) of clause (b) ;
(d) has, without reasonable excuse, absented himself from three consecutive
meetings of the Committee;
(e) has been guilty of abuse of power or of misconduct in the discharge of his
duties as Chairman or member, or been responsible for any loss 2[mis-
application, misappropriation or misuse] of any money or property of the
Committee ; or
(f) has become physically disabled from performing functions as Chairman or
member,
2
[the 3[Provincial] Council, in the case of a District Committee, and the District Committee,
in the case of Local Committee, may, by a resolution, remove such Chairman or member from
office].
2
[* * * * * * *]
2
[(3A) If, after such inquiry as may be considered necessary, the 3[Provincial] Council, in the
case of a District Committee, or the District Committee in the case of a Local Committee, is of the
opinion that the Chairman or a member of Committee or an employee assigned to work with a
Committee or an institution receiving Zakat Funds under this Ordinance, was guilty of misconduct in
the discharge of his duties, or is responsible for th loss, misapplication or misuse of Zakat Funds, the
3
[Provincial] Council or as the case may be, the District Committee shall initiate criminal
proceedings against such Chairman, member, person or institution.
1
Added and subs. by Ordinance No. VII of 1983, s. 5.
2
Subs. omitted and ins. by the Finance Act 1994 (Act No. XII of 1994) s. 8.
3
Subs. by Act No. X of 1997 s. 19.
Page 27 of 39
Explanation.__ For the purpose of clause (e) of sub-section (3) and sub-section (3A), the
expression “misconduct” means bribery, corruption, jobbery, favouritism, nepotism, wilful mal-
administration or wilful diversion of funds, and shall include an attempt or abetment of such
misconduct;]
(4) When the Chairman or member of a Committee is removed from, or otherwise ceases to
hold, office, the vacancy in the office of such Chairman or member shall be filled within such time
as the 1[the 2[Provincial] Council, in the case of a District Committee, and the District Committee, in
the case of a Local Committee may] determine, by the election, selection or nomination, as the case
may be, in accordance with the provisions of this Ordinance, of a person qualified to hold the office.
(5) The Chairman or member elected, selected or nominated under sub-section (4) shall hold
office for the unexpired term of his predecessor.
1
[(6) The 2[Provincial] Council may delegate to the Chief Administrator all or any of its
powers and functions under the preceding provisions of this section in respect of a District
Committee or a Local Committee.]
(7) The Chairman or a member of a Committee superseded under sub-section (1), or a
Chairman or member removed from office under sub-section (3), may, within such time, and in such
form and manner, as may be prescribed, apply to the 2[Provincial] Council for a review of its
decision; and the decision of the 2[Provincial] Council in such review, given after giving to the
applicant an opportunity of being heard, shall be final and shall not be called in question before any
Court or other authority.
1
[* * * * * * *]
3
[21-A. 1[Vote of no confidence].—(1) Where in case of a 1[* * *] Local Committee, the
District Committee, after such enquiry as it may deem fit, is of the opinion that the members of that
Committee no longer have confidence in the Chairman, the District Committee may, in the
prescribed manner, remove the Chairman from his office.
4
[(2) Where in the case of a member of a Local Committee, or of a Local Committee as a
whole, the District Committee, after such enquiry as it may deem fit, is of the opinion that the adult
Muslim residents of the locality no longer have confidence in the member, or in the Committee as a
whole, the District Committee may, in the prescribed manner, remove the member from his office or
dissolve the Committee as a whole.]
(3) The vacancy in the office of Chairman or member 4[or members] so caused shall be
notified by the District Committee and shall be filled in accordance with the provisions of this
Ordinance.]
1
Subs. omitted by the Finance Act, 1994 (Act No. XII of 1994), s. 8.
2
Subs. by Act No. X of 1997 s. 19.
3
Ins. by Ordinance No.LII of 1980, s. 14.
4
subs. and ins. by Ordinance No. VII of 1983, s. 6.
Page 28 of 39
1
[22. Administrative organization.—(1) The administrative organization under this
Ordinance shall be through 2[the Division concerned] and may include such organizations as are
performing social security and other complementary functions and that of a Chief Administrator, a
Department or a part of a Department of the Provincial Government.
(2) The Secretary of 2[the Division concerned] shall be the ex officio Administrator General
Zakat].
23. Certain persons to be public servants.—Every person engaged in, or employed for, the
administration of this Ordinance shall be deemed to be a public servant within the meaning of
section 21 of the Pakistan Penal Code (Act XIV of 1860).
3
[Explanation.—For the purposes of this section, the Chairman and members of the District
Committee and Local Committee shall be the persons engaged in the administration of this
Ordinance.]
__________
CHAPTER VI
MISCELLANEOUS
24. Exemption.—The Federal Government may, in consultation with the Council of Islamic
Ideology, exempt, by notification in the official Gazette, any specified class of cases or persons from
payment of compulsory levy of Zakat or Ushr.
25. Certain tax concessions.—(1) Notwithstanding anything contained in any other law for
the time being in force, —
(a) in determining the tax liability of an assessee for an assessment year,—
(i) under the Income-tax Ordinance, 1979 (XXXI of 1979), his taxable
income shall be reduced by the amount paid by him to a Zakat Fund,
during the previous year relevant to that assessment year ; and
(ii) under the Wealth-tax Act, 1963 (XV of 1963), his assets in respect of
which Zakat or contribution in lieu thereof, has been deducted at
source during the year relevant to that assessment year shall be
excluded from his taxable wealth ; and
(b) land-revenue and development cess shall not be levied on land on the produce
of which Ushr or contribution in lieu thereof, has been charged on compulsory
basis.
1
Subs. by Act No. X of 1997, s. 20.
2
Subs. by Act No. LV of 2023, s.4.
3
Added by the Finance Act, 1994, (Act No. XII of 1994), s.8.
Page 29 of 39
(2) Nothing in the preceding sub-section shall be deemed to affect the liability to pay
income-tax, wealth tax, land-revenue or development cess in respect of any period preceding the
enforcement of the relevant provisions of this Ordinance.
1
[26. Power to make rules.—The Central Council may, notification in the official Gazette,
make rules for carrying out the purposes of this Ordinance;
Provided that, if the Central Council so directs, the Provincial Council may, with the
approval of the Central Council, make rules in respect of administrative matters.]
1
[27. Power to call for information and issue directions.—The Central Council, the
Administrator-General, a Provincial Council, a Chief Administrator, a District Committee, a Tehsil
Committee, a Taluqa Committee, a Sub-divisional Committee, or a Local Committee, may, within
its or his jurisdiction, call for such information or record from, and issue such directions to the
concerned persons or agencies as may be necessary for the performance of its or his functions under
this Ordinance.]
28. Indemnity and bar of jurisdiction.—(1) No suit, prosecution or, other legal proceeding
shall lie against any person for anything in good faith done or intended to be done under this
Ordinance or any rule.
(2) No Court shall call in question, or permit to be called in question, anything done or any
action taken under this Ordinance or any rule.
(3) No Court shall grant any injunction or make any order, nor shall any court entertain any
proceedings, in relation to anything done or intended to be done or any action taken or intended to be
taken under this Ordinance or any rule.
________________________________________________________________________________
1
Subs.by Act No. X of 1997, s. 21 and 22.
(a) For the Zakat (Transfer and Disbursement) Rules, 1980, vide S.R.O. No. 758 (I)/80 dated the 12th July, 1980 see Gaz. of P., 1980 Ext.,
pp. 1387—1390.
(b) For the Islamabad Capital Territory Local Committee (Constitution) Rules 1980 vide S.R.O. No. 1159(I)/80, dated the 23rd November,
1980, see Gaz. of P., 1980 Ext. Pt. II., PP. 2225—2228.
(c) For the Islamabad Capital Territory Local Committee and the Islamabad Zakat and Ushr Committee (Procedure) Rules, 1980, vide
S.R.O. No. ll60(l)/80, dated the 23rd November, 1980, see Gaz. of P., 1980, Ext.. Pt. II. pp. 2229—2230.
(d) For the Zakat (Deduction and Refund) Rules, 1981, vide No. CA 1155/CD 2(5), dated the 23rd April, 1981, see Gaz. of P., Ext., Pt. III.
pp. 197—222.
(e) For the Islamabad Capital Territory Local Committee (Removal of Chairman and Members) Rules, 1982, vide S.R.O. III(I)/82, dated the
3rd February, 1982, see Gaz. of P., 1982, Ext., Pt. II pp. 151—155.
(f) For the Ushr (Assessment and Collection) Rules, 1983, vide S.R.O. No. 2l9(I)/83, dated the 2nd March, I983 see Gaz. of P., 1983 Ext.,
Pt. II, pp. 287—298.
(g) For the Punjab Ushr (Assessment and Collection) Rules, 1983 vide S.R.O. No. 305(I)/83, dated the 27th March, 1983, see Gaz. of P.;
1983, Ext., Pt. II pp. 433— 444.
(h) For the Baluchistan Ushr (Assessment and Collection) Rules, 1983, vide S.R.O. No. 306 (l)/83, dated the 27th March, 1983, see Gaz. of
P., 1983, Ext., Pt II pp. 445—456.
(i) For the Sind Ushr (Assessment and Collection) Rules 1983, vide S.R.O. No. 334(I/83, dated the 30th March, I983f.see Gaz. of P., 1983.
Ext., Pt. II. pp. 491—503.
(j) For the North-West Frontier Province Ushr (Assessment and (Collection) Rules, 1983, vide S.R.O. No. 335 (I)/83, dated the 2nd April,
1983 see. Gaz of P., 1983 Ext., Pt.. II, pp. 505—517.
(k) For the Superseded and Removed Chairman and Members of Zakat Committees (Application for Review) Rules, 1985, vide S.R.O. No.
l47(I)/85, dated the 14th February, 1985, see Gaz., of P., 1985, Ext., Pt. II, pp. 197-198.
Page 30 of 39
29. Removal of difficulties.—The Federal Government may make such provisions1 as may
be necessary to remove any difficulty in carrying out the purposes of this Ordinance.
2
[29A. Dissolution and reconstitution of Committees.—All existing District Zakat and Ushr
Committees, Tehsil Taluka and Sub-Divisional Zakat and Ushr Committees and Local Zakat and
Ushr Committees shall stand dissolved and cease to function with immediate effect and new
Committees shall be constituted under sections 16, 17 and 18 within a period of 3[six months] from
commencement of the Zakat and Ushr (Amendment) Ordinance, 2000.]
30. Repeal.—The Zakat and Ushr (Organisation) Ordinance, 1979 (XXIX of 1979), is
hereby repealed.
1
The Zakat and Ushr Ordinance, 1980 has been modified as shown below:
(1) S.R.O. 646(I)/80,dated the 22nd June, 1980.
(2) S.R.O. 104(I)/81, dated 5th February, 1981.
(3) S.R.O. 739(I)/81-A, dated 8th July, 1981.
(4) S.R.O. 1207(I)/81, dated 15th November, 1981.
(5) S.R.O. 523(K)/82, dated 6th June, 1982.
2
Ins. by Ordinance No. LIX of 2000, s.5.
3
Subs. by Ordinance No. XXI of 2001, s.2 and shall be deemed always to have been so subs.
Page 31 of 39
FIRST SCHEDULE
(See section 2 and 3)
ASSETS SUBJECT TO COMPULSORY LEVY OF ZAKAT THROUGH DEDUCTION-AT-
SOURCE FOR CREDIT TO THE CENTRAL ZAKAT FUND
1
S.No. Assets [* * *] Rate and basis for computing the The Deduction The Deducting
amount to be deducted as Zakat Date Agency
1
1 2 [*] 4 5 6
1
1. Savings Bank [* * *] 2.5% of the amount standing to As notified by the The bank,
Accounts and the credit of an account at the Administrator- Office, Centre,
similar accounts commencement of the day on the General for the or institution, as
by whatever Valuation Date. 1[No deduction Zakat year. the case may
name described shall be made in case the amount be, keeping the
2[
* * *]- with the standing to the credit of an account.
banks operating account does not exceed the
in Pakistan post amount notified by the
offices, National Administrator-General].
Savings Centres
and financial
institutions
keeping such
Accounts.
1 1
2. Notice Deposit [* * *] 2.5% of the face value of a [The date on The bank,
Receipt and receipt or the amount standing to which the first office, centre or
Accounts 1[* * *] the credit of an account 1[,as the return is paid or the institution, as
and similar case may be,] at the date of encashment the case may
receipts and commencement of the day on the withdrawal, be, issuing the
accounts by Valuation Date, in each Zakat whichever be receipt or
whatever name year. earlier in the Zakat keeping the
described 2[* * *]- year.] account, and
with the banks responsible for
operating in paying the
Pakistan, post return or the
offices, National amount
Savings Centres encashed/withd
and financial -rawn.
institutions
issuing such
receipts and
keeping such
accounts.
1
Omitted, subs and ins. by Ordinance No LII of 1980, s. 15.
2
Omitted by Ordinance No. XLVI of 1984, s. 3.
Page 32 of 39
1
1 2 [*] 4 5 6
1 3* 1 2.5% of the face value
3.3. Fixed Deposit Receipts [* * [* * *] The date on which the The bank,
*]and Accounts and similar of a receipt or a office, Centre
certificate, or the first return is paid, or
receipts and accounts 2[* * *] or institution,
amount standing to the the date of encashment/ as the case may
and certificates (e.g. Khas credit of an account redemption/
,as the case may be, as be, issuing the
Deposit Certificates), by receipt or
whatever name described, at the commencement withdrawal, whichever
d of the day on the certificate or
issued by the banks operating be earlier in the Zakat keeping the
Valuation Date, in
in Pakistan, post offices, each Zakat year. year. account, and
National Savings Centres and responsible for
paying the
financial institution,—on return, or
which return is receivable by encashment/
the holder periodically or is redemp-
received earlier than maturity. tion/withdrawal
.
2.5% of the payable The bank,
4. Savings/ deposit certificates *3 1[* * *]
e.g. Defence Savings value of certificates or The date on which the office, Centre,
Certificates, National Deposit receipts or the amount value on maturity is
paid, or of institution,
Certificates), receipts and standing to the credit encashment/withdrawal, corporation or
accounts by whatever name of an account, 1[as the whichever be earlier in company, as the
described, issued or kept by case may be, as on the the Zakat year.
case may be
the banks operating in valuation Date].
Pakistan, post offices, responsible for
National Savings Centres, paying the
financial institution, statutory return or the
corporations and amount,
companies,— on which return withdrawn, or
is 1[receivable and] is redeeming/
received by the holder, only encashing the
on maturity or encashment. *3 certificates or
receipts.
5. Units of the National The Trustee of
3 1 2.5% of the
Investment (Unit) Trust. * [* * *] 1 The date on which the the National
[*]repurchase value first return or the
of the Units as on the 1
[repurchase] value is Investment
paid, whichever be (Unit) Trust or
earlier in the Zakat
year. its
1
Omitted and subs. by Ordinance No. LII of 1980 s. 15.
2
Omitted by Ordinance No. XLVI of 1984, s. 3.
Page 33 of 39
1
1 2 [*] 4 5 6
Valuation Date in authorised agent
each Zakat year. paying1 the return on,
or the [repurchase]
value of, the Units.
3
6. I.C.P. Mutual Fund
1[ 2.5% of the face The date on which the
Certificates. ***]
value, or the first return is paid in the Investment
market value based Zakat year. Corporation of
on the closing rate Pakistan.
at the Karachi
Stock Exchange,
whichever be
lower as on the
Valuation Date in
each Zakat year.
3
Government 2 1[
2.5% of the face The date on which the The bank, office or
7. ***] value of the institution as the case
securities (other than first return is paid or the
Government may be, responsible
prize bonds and date of for paying the return
certificates men- securities as on the encashment/redemption, or encashing/
tioned at serial Valuation Date in whichever be earlier in redeeming the securi-
each Zakat year. the Zakat year. ty.
number 3 and 4) on
which return is 3
receivable by the
holder periodically.
The corporation,
Securities including If listed on the The date on which the
company or
8. shares and debentures 1[
***] stock exchange, first return is paid, or
institution, as the
1
of [companies or 2.5% of the paidup the date of
case may be,
statutory value, or the encashment/redemption,
responsible for
Corporations] market value based whichever be earlier in
paying the return or
on the closing rate the Zakat year.
(excluding those held encashing/redeeming
in the name of a at the Karachi the security.
1
[company or a Stock Exchange,
statutory corporation] whichever be
and those mentioned lower as on the
at serial number 5, 6 Valuation Date, in
and 7), on which each Zakat year. If
not listed on the
return is payable
stock exchange
periodically or
2.5% of the paid-
otherwise, and is
up value on the
paid.
Valuation Date, in
each Zakat year.
1Subs. and omitted by Ordinance No. LII of 1980, s. 15.
Page 34 of 39
1
1 2 [*] 4 5 6
1 1
9. Annuities [* * *] [2.5% of the The date of 1[first] 2
[The insurer or the
aggregate amount payment of the bank keeping the
of annuity benefit annuity benefit, or amount in the form
in each Zakat year of the surrender of an annuity.]
or 2.5% of the value, whichever be
surrender value on earlier in the Zakat
the Valuation Date, year.
as the case may be.]
1 1
10. Life insurance [* * *] [2.5% of the The date of The insurer.
policies. payable value on payment of value
maturity or of sur- on maturity or of
render value, as on survival benefit or
the Valuation of surrender value.
Date in the Zakat
year in which the
policy matures or
its survival benefit
or surrender value
is paid, as the case
may be.]
1 1 1 1
11. Provident Funds. [* * *] [In case of non- [The date of [The authority,
refundable advance, payment of the officer or institution
2.5% of the amount advance or of the making payment of
drawn or, in case of balance.] the advance or of the
final settlement, balance.]
2.5% of the balance
standing to the
credit of the
subscriber as on the
Valuation Date,
excluding in both
cases the
employer’s
contribution and the
return accrued
thereon.]
1
Omitted, subs. and ins. by Ordinance No. LII of 1980, s.15.
2
Subs. by S.R.O. No. 739(1)/81—A32, dated 8th July, 1981, see Gazette of Pakistan, 1981, Part II, page 1729.
Page 35 of 39
Note.—1. Deduction at source exceeding two and one-half per cent of the value of an asset
specified in this Schedule, shall not be made in respect of that asset within the same
Zakat year.
1
[1A, No Zakat shall be charged on the amount paid as premium of a life insurance
policy of a person from his Provident Fund and, where the proceeds of a life
insurance policy of a person are credited to his Provident Fund during a Zakat year,
no Zakat shall be charged on the amount received or drawn during that year as final
settlement of his account in the Provident Fund or as non-refundable advance, to the
extent of the procedes so credited.]
2. If the amount to be deducted at source as Zakat, in a particular case, is less than a
rupee, it shall not be charged, and, if it is more than a rupee but has a fraction of a
rupee, fifty paisas and more shall be treated as the next higher rupee and less than
fifty paisas shall not be charged. 1[Where the entire amount of the return balance
instalment of annuity benefit is to be appropriated towards Zakat, and the amount
contains a fraction of a rupee, this fraction shall not be so appropriated].
3. The 1[* * *] Deduction Date 1[for serial number 1] shall be deemed to be a public
holiday, for banks only, within the meaning of the Negotiable Instruments Act, 1881
(XXVI of 1881). Banks shall, however, remain open for their employees.
1
[4. In case the amount of the first return on any of the assets specified as S. Nos. 2, 3 and
5 to 8, or the first instalment of the annuity benefit, is less than the Zakat due, the
entire amount of such return or instalment shall be appropriated towards Zakat and
the unrealized balance shall be deducted from the subsequent returns or instalments
paid during the same Zakat year or, as the case may be, from the encashment or
surrender value.].
1
Ins., added and omitted by Ordinance No.LII of 1980, s. 15.
Page 36 of 39
SECOND SCHEDULE
(See sections 2, 3(5) and 5)
ITEMS NOT SUBJECT TO COMPULSORY LEVY OF ZAKAT BUT ON WHICH ZAKAT IS PAYABLE
BY EVERY SAHIB-I-NISAB ACCORDING TO THE RELEVANT NISAB, ON SELF-ASSESSMENT
BASIS, EITHER TO A ZAKAT FUND OR TO ANY INDIVIDUAL OR INSTITUTION, ELIGIBLE,
UNDER THE SHARIAH, TO RECEIVE ZAKAT
Rate and Basis for Self-Assessment 1[* * *]
S.No. Items
1[*]
1 2 3
1 1[
1. [Gold and silver and manufactures thereof.] 2.5% of the market value, as on the Valuation Date. * * *]
1[*
2. Cash .. .. .. .. .. 2.5% of the amount, as on the Valuation Date. * *]
1[*
3. Prize bonds .. .. .. .. 2.5% of the face value, as on the Valuation Date. * *]
1[Current 1[*
4. Accounts and foreign currency accounts and, to the 2.5% of the value of the asset, as on the Valuation Date. * *]
extent not subject to compulsory levy of Zakat under the First
Schedule, other accounts, certificates, receipts, Units of National
Investment (Unit) Trust, ICP-Mutual Fund Certificates,
Government securities, annuities, life insurance policies and
Provident Funds.]
1[*
5. Loans receivable, excepting loans receivable by banks, other 2.5% of the amount of loan receivable, as on the * *]
Valuation Date.
financial institutions, statutory corporations and Companies.
1[*
6. Securities including shares and debentures, to the extent not If listed on the stock exchange, 2.5% of the market * *]
subject to compulsory levy of Zakat under the First Schedule. value (i.e. the closing rate at the Karachi Stock
Exchange), as on the Valuation Date.
If not listed on the stock exchange, 2.5% of the
paid-up value, as on the Valuation Date.
7. Stock-in-trade of:— (a) 2.5% of the book value, or, at the option of the
(a) Commercial undertakings (including dealers in real estate). sahib-e-nisab, the market value, as on the
Valuation Date.
1[* * *]
(b) Industrial undertakings .. .. .. (b) 2.5% of the book value, or, at the option of the
sahib-e-nisab, the market value of raw materials
and finished goods, as on the Valuation Date.
1
Omitted and subs. by Ordinance No. LII of 1980, s. 16.
Page 37 of 39
1[*]
1 2 3
1 1[2.5% of the market value, as on the Valuation Date.
[(c) Precious metals and stones and manufactures
thereof
2.5% of the value, as on the Valuation Date.]
(d) Fish and other catch produce of the sea, except
catches by indigenous techniques]
1[* 1[*
* * * * * *] * *]
9. Agricultural (including horticultural and forest) produce :
1
(a) Tenant’s share .. .. .. .. (a) (i) 10% of the produce, as on the Valuation Date, in [* * *]
the barani area; and
(ii) 5% of the produce, as on the Valuation Date, in
the non-barani area.
(b) Other than the tenant’s share. . 1[(b) (i) 5% over and above the compulsory 5%, in the
barani area, as on the Valuation Date ; and
(ii) One-fourth of the value of produce allowed as an
allowance for expenses on production.]
10. Animals (fed free in pastures) :
(a) (i) For owners of one to 39 heads : nil;
(a) Sheep or goats .. .. ..
(ii) For owners of 40 to 120 heads : one sheep/goat;
(iii) For owners of 121 to 200 heads : two sheep/goats
;
(iv) For owners of 201 to 400 heads : three
sheep/goats ; and
(v) For owners of every complete additional hundred
heads: one sheep/goat, as on the Valuation Date.
(b) Bovine animals .. .. . .. 1[* * *]
(b) (i) For owners of one to 29 heads: nil;
(ii) For owners of 30 to 39 heads : one-year old calf;
(iii) For owners of 40 to 59 heads : two-years old calf;
(iv) For owners of 60 head and every additional 10
heads : one year old calf for each 30 heads and
two-years old calf for each 40 heads,—as on the
Valuation Date.
(c) (i) For owners of one to 4 heads : nil;
(c) Camels .. .. . ..
(ii) 1[For owners of 5 to 24 heads : one sheep goat for
every five heads:]
1
Omitted, added and subs. by Ordinance No. LII of 1980, s. 16.
Page 38 of 39
(iii) For owners of 1[25] to 35 heads : one;she-camel between one
year and two-year old : and
(iv) For owners of 36 to 45 heads : one she-camel between two and 1
[* * *]
three years old ; and so on, as on the Valuation Date.
1 1
[* * * * * * * *] [* * *]
12. Wealth and financial assets other than
1
those listed in schedule, on which As per Shariah. [* * *]
Zakat is payable according to Shariah.
___________
4015535 RGN Date: 07.04.2026
1Subs. and omitted by Ordinance No.LII of 1980, s. 16.
Page 39 of 39
Source: Pakistan Code, Ministry of Law and Justice (pakistancode.gov.pk). Text on this page is reproduced verbatim from the official PDF and is provided for reference only. For the authoritative version, always consult the source document or a current reported edition.
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