The Holy Month of Ramadan is about to start; the month that is associated with deduction of Zakat through banking system in Pakistan. Government decides the Nisab for Zakat (the minimum amount on which 2.5% deduction would be applied).
State Bank of Pakistan has promulgated the Nisab for the year 1437-38 to all the banks operating in Pakistan. The Nisab has been set to Rs. 38,406 for this year that will apply on Saving Accounts.
This essentially means that no deduction of Zakat at source shall be made in case the amount parked in the accounts is lesser than the value defined above.
The 2.5 per cent deduction, applied on Saving, Profit and Loss Sharing and other similar accounts, will be made on 1st of Ramadan that is likely to fall on May 27 or 28, notified the Administrator General Zakat.
However, the Savings Account holders, who have already submitted an affidavit, will be exempted from the deduction.
State Bank of Pakistan has issued directives to all the Presidents / Chief Executives of All Banks / DFIs / MFBs, which is given as below.
Deduction of Zakat at Source in Respect of Saving Banks/Profit & Loss Sharing and Similar Bank Accounts (Asset Code No.101) and Deposit Thereof Immediately after Deduction Date
State Bank also shared the copy of the notification No.CE-1001(36)/NISAB/1437-38/2017 dated May 24, 2017 issued by the Ministry of Religious Affairs and Interfaith Harmony, on the subject for immediate action.