Although Bangladesh is the second-largest Muslim country in the world, the country performs poorly in Zakat (obligatory charity in Islam) collection and distribution and it is still unsystematic.
However, the obligatory charity that a well-off religionist has to make annually can potentially lead to poverty alleviation and promote microfinance in the country.
Researchers said that Zakat has the potential not only to alleviate poverty but also to contribute to the growth of the economy of Bangladesh. “Zakat collection is not systematic in Bangladesh while there is no official data on the potential of Zakat collection, which is close to 4 cent of the country’s GDP,” said Dr M Kabir Hassan, a finance professor at University of New Orleans.
Many Muslims give Zakat every year, but they don’t give it to any government or private charity as many of them are still unaware of the government’s Zakat collection and distribution system.
Against this backdrop, the government is going to formulate the ‘Zakat Fund Management Act, 2022’, keeping the provision of collecting and distributing Zakat through use of information and communication technology (ICT).
The law is being formulated also to encourage people to give Zakat. As per the proposed law, a Zakat centre will be set up, fixing the amount of Zakat per person and issuing certificates for giving zakat, said an official of the Religious Affairs Ministry.
The ‘Zakat Fund Management Bill, 2022’ is going to be placed in the Parliament today (Sunday), said Parliament Secretariat sources.
State Minister for Religious Affairs Md Faridul Haque Khan will place the bill in the House. Later, it will be sent to the respective parliamentary standing committee for further scrutiny.
The proposed ‘Zakat Fund Management Act, 2022’ will replace the Zakat Fund Ordinance, 1982.
However, the Cabinet approved the draft of ‘Zakat Fund Management Act’ on October 19 in 2021.
According to the proposed law, a Zakat board will be formed under the supervision of the Islamic Foundation, and a committee from that board will manage the collection and distribution of Zakat.
After the law is enacted, anyone from home and abroad will be able to give zakat at any government scheduled bank.
Zakat, one of the five pillars of Islam, is obligatory charity for Muslims every year. Those wealthy enough to afford to pay Zakat must pay forward to those who need the wealth to live more sustainably.
According to a World Bank report, the potential of Zakat economy is much higher in Bangladesh with 1.63 per cent of its GDP, the second-highest among Muslim countries.
Zakat can help reduce income disparity with economic growth as a poverty reduction tool. Zakat is also considered one of the unique instruments for poverty alleviation as wealth is transferred from well-off people to worse-off people.