Skip to content

Explanation

The Zakat and Usher Ordinance was promulgated on 20 June 1980 by General Zia-ul-Haq's regime as part of his Islamization process in Pakistan. This ordinance established a comprehensive legal framework for the compulsory deduction of Zakat from certain financial assets and the collection of Usher on agricultural produce. The system introduced mandatory Zakat deduction from savings accounts, fixed deposits, and other specified assets, which was managed by the Central Zakat Council at the federal level.

Good to know

The Zakat and Usher Ordinance, 1980 (Ordinance No. XVII of 1980) came into effect on 20 June 1980 and was later ratified by the National Assembly. Under this ordinance, Zakat is deducted at the rate of 2.5% annually from specified financial assets on the first day of Ramadan, while Usher is levied at 5% on irrigated land and 10% on non-irrigated land. The ordinance also established the Central Zakat Council, Provincial Zakat Councils, and Local Zakat Committees to administer the collection and distribution of Zakat funds.

Related MCQs

Start studying free