4/10/2005 7:15:00 AM GMT
Source: khaleejtimes.com
Muslims scholars taking art in the 16th Islamic Fiqh Academy Conference (IFA) reached the general opinion that Zakat should be paid by Muslims who keep money in bank accounts as the intent behind such deposits is to earn returns through interest.
The conference, which will conclude on April 14, has been organised by Dubai Auqaf and Islamic Affairs Department under the patronage of Shaikh Hamdan bin Rahshid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry.
The event which is being attended by over 150 scholars from all over the world, was inaugurated by Shaikh Mohammed bin Khalifa Al Maktoum, Chairman of the Dubai Department of Lands and Property, on behalf of Shaikh Hamdan.
During the first session of the conference, eight working papers were presented by various scholars on the Islamic ruling on Zakat paid for frozen money.
The term frozen money was defined by the participants as the amount of money that cannot be used by its owners for any reason for a specific period of time. They classified the frozen money under six categories including installment of all types of insurance, long-term investment such as saving deposit, end of employment benefits, retirement salaries, money paid by social insurance and utilities insurance.
The scholars agreed on an Islamic ruling which states that the Zakat is applicable to all these six categories and becomes a religious obligation when the money in these categories becomes equal to Nisab (legally determined amount of wealth, possession of wealth less than the Nisab exempts the owner from the obligation of Zakat).
It was also agreed that the money from social security paid to employees working in government departments was not applicable for Zakat. "This money should be paid by the company or the client," Dr Qoutb Sanoo, Member of International Fiqh Council, said, adding that Zakat is applicable for money frozen for a long time for investment purposes, if such money becomes equal to Nisab and has been frozen for a minimum period of one year. "Retired employees are obliged to pay Zakat when their retirement salaries reach the Nisab in one year," he clarified.
Dr Mohammed Ghanayem, Professor of Shariah Law at Cairo University, said the money received at the end of employment or retirement is applied for Zakat and it is obligatory for an employee to pay it after he receives the money from his employer.
According to Dr Mohammed Al Habaib bin Al Khouja, Secretary-General of the Committee, the Islamic Fiqh Academy was formed at the Organisation of Islamic Conference on January 15, 1981, to be as League of all Muslim countries and minority Muslims in non-Muslim countries.
Al Habib said the IFA conference aims at achieving theoretical and practical unity of the Islamic Ummah by striving to have man conform his conduct to the principles of Shariah at the individual, social as well as international levels, strengthening the link of the Muslim community with the Islamic faith, drawing inspiration from Shariah, to study contemporary problems from the Shariah point of view and to try to find solutions in conformity with the Shariah through an authentic interpretation of its content.
The purpose of IFA, which is comprised of scholars and jurists from the Islamic world, focuses on the problems faced by Muslims in the contemporary world and proposes solutions to those problems.