Zakat & Ushr Ordinance In Pakistan

Public Laws like Zakat(poor tax) and Ushr (tax on agriculture produce) were introduced on 21 June 1980 to help the needy people. The basic aim of this law was the introduction of Islamic economic system in the country.

A Zakat fund was established to collect all sorts of gifts & bounties. It was made compulsory for every Sahib-e-Nisab Muslim to pay Zakat by deducting it from his/her bank account. Deduction of Zakat would be applicable on the saving accounts and the current accounts would be exempted from it.

Ushr is a tax which is levied on the yield of agricultural land in cash or kind. According to this Ordinance every owner of an agricultural land would have to deposit with the Government 10 percent of the agricultural yield of the land under his use in cash or kind as Ushr.

 

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