Zakat annual recovery is declining: SBP

The government during the past six years recovered Rs12.51 billion on account of Zakat, while its recovery on the annual basis is seen declining. State Bank of Pakistan (SBP) said that the government during 2004-2009 deducted Zakat at 2 percent of the bank accounts balances besides on the profits of National Saving Schemes and stock market companies dividend, which amounted to Rs12.515 billion. Zakat deduction data showed that the amount of collection is on the decline instead of rising, as the government had recovered Rs2.544 billion in 2004, but in 2008 it fell to Rs1.93 billion, showing a decline during five years a significant fall of Rs600 million. Similarly, Rs1.27 billion was deducted on account of Zakat this year on 1st Ramazan. Baking sources said that a large number of people withdraw the heavy amounts from their accounts before the advent of Ramazan in order to avoid Zakat deduction by the government besides the trend of submitting affidavit for exemption from Zakat deduction is also in the rise.

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