Zakat and how it can transform Pakistan into a first world country

[PeterboroughAli]

The problem is not one of money. This topic has been discussed before on this forum. For example, see:

THE SAD STORY OF THE REJECTION OF SCIENCE

,.,. THE SAD STORY OF THE REJECTION OF SCIENCE Pervez Hoodbhoy President Ayub Khan looking at the glow of the nuclear reactor at PINSTECH through a special viewer in a water pool in the mid-1960s. (Courtesy: Ayub Khan Archives/ Tahir Ayub) SCIENCE matters. Many yearn for science-free times...

defence.pk

https://defence.pk/pdf/threads/the-real-causes-of-muslims-scientific-downfall.756346/

Are you sure it shows states with higher gdp per capita in R&D doing better than countries such as Pakistan and Nigeria with low gdp per capita in R&D

As i said the concept is same but implementation is different. The govt taxes everything, for everyone, like VAT and others, which doznt bother the rich but affects the poor, so its unfair. Zakaat is tax on wealth, which in many countries is not there. There is also no fixed percentage and govt can decide how much to take. For example, in Pakistan there is no tax on wealth, the rich are thus not paying, heavy blanket taxes are implemented, making everything expensive that affects the poor only. Zakaat is not to be paid on running income either, like salary. Even western countries have offshore areas that have no tax on wealth where u can stashe ur wealth. Zakaat basically is opposite that only taxes wealth saved, thus enhancing wealth circulation. ofcourse modern era requires new taxes, but that doesn't mean wealth should not be taxed, infact taxing the wealth is most important.n

Also I have described intangible assets as not due any Zakat payments as they are not wealth. I have not heard of knowledge having Zakat payment on it. Prophets were most knowledgeable they didn’t have to pay Zakat payment on there knowledge.

The problem is not one of money. This topic has been discussed before on this forum. For example, see:

THE SAD STORY OF THE REJECTION OF SCIENCE

,.,. THE SAD STORY OF THE REJECTION OF SCIENCE Pervez Hoodbhoy President Ayub Khan looking at the glow of the nuclear reactor at PINSTECH through a special viewer in a water pool in the mid-1960s. (Courtesy: Ayub Khan Archives/ Tahir Ayub) SCIENCE matters. Many yearn for science-free times...

defence.pk

https://defence.pk/pdf/threads/the-real-causes-of-muslims-scientific-downfall.756346/

It is of money, money gets invested in land that once population increases grows in value, rather than being put to use in R&D

 

[PeterboroughAli]

The problem is not one of money. This topic has been discussed before on this forum. For example, see:

THE SAD STORY OF THE REJECTION OF SCIENCE

,.,. THE SAD STORY OF THE REJECTION OF SCIENCE Pervez Hoodbhoy President Ayub Khan looking at the glow of the nuclear reactor at PINSTECH through a special viewer in a water pool in the mid-1960s. (Courtesy: Ayub Khan Archives/ Tahir Ayub) SCIENCE matters. Many yearn for science-free times...

defence.pk

https://defence.pk/pdf/threads/the-real-causes-of-muslims-scientific-downfall.756346/

World Bank Open Data

Free and open access to global development data

data.worldbank.org

Please see above table showing which countries invest most in R&D and you get the highly developed countries like the USA , China, Germany etc Israel’s is above 5% even with small population known for its innovation, it doesn’t happen without money, investment is needed otherwise all populous nations would overtake smaller nations

If money is not a issue why are all these rich nations investing in R&D gaining intangible assets also fighting between each other for those intangible assets

 

[epebble]

World Bank Open Data

Free and open access to global development data

data.worldbank.org

Please see above table showing which countries invest most in R&D and you get the highly developed countries like the USA , China, Germany etc Israel’s is above 5% even with small population known for its innovation, it doesn’t happen without money, investment is needed otherwise all populous nations would overtake smaller nations

All these countries have high GDP. Please list their achievements beyond pumping oil using someone else's technology and building fancy places using other people's technology and labor.

Qatar *

Asia

82,887

2022

66,838

2021

66,799

2021

United Arab Emirates *

Asia

47,793

2022

44,316

2021

43,295

2021

Kuwait *

Asia

38,123

2022

24,300

2020

32,150

2021

Bahrain *

Asia

28,692

2022

26,563

2021

26,563

2021

Saudi Arabia *

Asia

27,941

2022

23,186

2021

23,186

2021

Oman *

Asia

23,542

2022

19,510

2021

19,509

2021

 

[PeterboroughAli]

All these countries have high GDP. Please list their achievements beyond pumping oil using someone else's technology and building fancy places using other people's technology and labor.

Qatar *

Asia

82,887

2022

66,838

2021

66,799

2021

United Arab Emirates *

Asia

47,793

2022

44,316

2021

43,295

2021

Kuwait *

Asia

38,123

2022

24,300

2020

32,150

2021

Bahrain *

Asia

28,692

2022

26,563

2021

26,563

2021

Saudi Arabia *

Asia

27,941

2022

23,186

2021

23,186

2021

Oman *

Asia

23,542

2022

19,510

2021

19,509

2021

World Bank Open Data

Free and open access to global development data

data.worldbank.org

Actually it showed the Arabs have low R&D percentage investment, please look at the link I posted

Arabs were 0.72% compared to Israel of above 5% that’s negligible

 

[PeterboroughAli]

Pakistan R&D as of 2019 is 0.2% of GDP which is negligible if it went above or close to 5% economy would look like South Korea’s

 

[Jeeten Parikh]

From my research Zakat is payable only on tangible assets and not payable on intangible assets. Zakat is payable on wealth, and I worked out intangible assets is not wealth. Intangible assets being intellectual property, brand value, how to design and manufacture a good or service.


So I asked two questions to figure out if intangible assets was wealth. First figuring out if intangible assets is not wealth then figuring out tangible assets is wealth.


Intangible assets is not wealth

If there was someone who had average house average car and savings, who made the design for the latest tech product in there garage, and tweeted it and got lots of likes, people ready to buy. Just as they did this he completed the design and sent out tweet he died same day , would you say this person died wealthy or rich or average? The answer came back as average wealth even though there intangible assets were worth a lot. Which means intangible asset is not wealth.


Tangible assets is wealth

If there was someone who had a average house a average car and savings. However they accumulated lots of factories, trucks and equipment, in their lifetime. Just as this person did this they died, would you say this person died wealthy or rich or average? The answer came back as wealthy. So same scenario but with the accumulation of tangible assets people say the person is wealthy.


From my research Zakat is payable only tangible assets and not payable on intangible assets. Zakat is payable on wealth, and I worked out intangible assets is not wealth. Intangible assets being intellectual property, brand value, how to design and manufacture a good or service.



So I asked two questions to figure out if intangible assets was wealth. First figuring out intangible assets is not wealth then figuring out tangible assets is wealth.



Intangible assets is not wealth



If there was someone who had average house average car and savings, who made the design for the latest tech product in there garage, and tweeted it and got lots of likes, people ready to buy. Just as they did this he completed the design and sent out tweet he died same day , would you say this person died wealthy or rich or average? The answer came back as average wealth even though there intangible assets were worth a lot. Which means intangible asset is not wealth.



Tangible assets is wealth



If there was someone who had a average house a average car and savings. However they accumulated lots of factories, trucks and equipment, in their lifetime. Just as this person did this they died, would you say this person died wealthy or rich or average? The answer came back as wealthy. So same scenario but with the accumulation of tangible assets people say the person is wealthy.



What happens when we live in a Zakat system with correctly no Zakat payable on intangible assets. Investors crave intangible assets as no Zakat is due on them. The economy starts to produce more intangible assets through R&D(research and development).



Now it has been said to make a successful economy you need to improve the level of R&D that is conducted within it. With successful large economies still investing large amounts in R&D.

So will this make Pakistan into a first world country?

this makes no sense.
just like the old communists and socialists say dumb things like "to everyone their need and from everyone, their might". It is a race to bottom where everyone ends up being poor.

R&D requires brains, among other things. Somebody who takes up R&D as a tax / zakat avoidance measure has proven just by that act that they are brainless. They will end up in the poorhouse.

Also. On what basis did you come to think the distinction should be between tangible and intangible? Seems quite random. Like red shirt pay more tax, blue shirt run two rounds, yellow shirt do 10 pushups ....just random. Kindly elaborate your rationale for choosing that basis.

 

[PeterboroughAli]

this makes no sense.
just like the old communists and socialists say dumb things like "to everyone their need and from everyone, their might". It is a race to bottom where everyone ends up being poor.

R&D requires brains, among other things. Somebody who takes up R&D as a tax / zakat avoidance measure has proven just by that act that they are brainless. They will end up in the poorhouse.

Please see attached file, more investment into intangible asset heavy companies means more will crop up, rule of supply and demand. Investments into companies like Google, Microsoft etc. over investments into houses you can also buy a index fund. These companies invest in R&D ChatGpt, AI etc. It’s not a winner takes all Pakistan can benefit from investments in R&D like Chatgpt.

 

[Jeeten Parikh]

Please see attached file, more investment into intangible asset heavy companies means more will crop up, rule of supply and demand. Investments into companies like Google, Microsoft etc. over investments into houses you can also buy a index fund. These companies invest in R&D ChatGpt, AI etc. It’s not a winner takes all Pakistan can benefit from investments in R&D like Chatgpt.

the chart simply shows the trend.
My question is how do you go from there to asserting you can affect this by taxation?
And more importantly how do expect to run a decent country by taxing less than 10% of its economic activity if 90% of it is tax free?
Do intend this to be on income or wealth?

OR Just explain this. No first world economy has zakat. But you think Pakistan can become 1st world via zakat. WHy?

 

[PeterboroughAli]

the chart simply shows the trend.
My question is how do you go from there to asserting you can affect this by taxation?
And more importantly how do expect to run a decent country by taxing less than 10% of its economic activity if 90% of it is tax free?
Do intend this to be on income or wealth?

OR Just explain this. No first world economy has zakat. But you think Pakistan can become 1st world via zakat. WHy?

It shows the worlds biggest superpower having 90% intangible assets and 10% tangible assets, the value of intangible assets. This is investment people will have houses and cars etc that makes up their wealth which Zakat will be payable upon. Zakat is on wealth 2.5%.

Because it’s the fastest way to become first world country. Less investments in land and real estate, propping up their prices creating a bubble like scenario to more towards companies with high amounts of intangible assets that have good R&D. Learn how to mine, refine, design and manufacture, goods and services.

 

[AZADPAKISTAN2009]

Zakat is only due if you have extra money, if you wish to pay duel Zakat

You pay Taxes in your own country which is used for Development fund for all people in your country of residence

• Taxes of Western Country pays for helping poor
• Taxes of Western Country pays for helping build schools and hospitals
• Taxes of Western country helps pay for helping building roads and keeping security.
• Taxes of Western country goes to help victims of Natural Disaster

Go pick up the budget for your country where you reside and see where the fund went

You can pay to

• Edhi Foundation
• Shaukat Khanam Caner hospital
• or any None Profit should you wish

Pakistan's problem is Life of Luxury enjoyed by Top 5%

 

[PeterboroughAli]

Zakat is only due if you have extra money, if you wish to pay duel Zakat

You pay Taxes in your own country which is used for Development fund for all people in your country of residence

• Taxes of Western Country pays for helping poor
• Taxes of Western Country pays for helping build schools and hospitals
• Taxes of Western country helps pay for helping building roads and keeping security.
• Taxes of Western country goes to help victims of Natural Disaster

Go pick up the budget for your country where you reside and see where the fund went

You can pay to Edhi Foundation or Shaukat Khanam Caner hospital or any None Profit should you wish

In Islam it’s pay Zakat to the government whereby they allocate the resources.

In Islam it’s pay Zakat to the government whereby they allocate the resources.

It is a certain amount Nisab, anything above it Zakat is due

 

[AZADPAKISTAN2009]

We shall talk about Zakat after Election after a policy is made by Imran Khan
a wonderful topic

I donate now and then to

• Edhi Foundation
• Cancer Hospitals
• Disaster Releif
• Political Cause

Helping needy people in own family first

 

[PeterboroughAli]

We shall talk about Zakat after Election after a policy is made by Imran Khan


View attachment 920895

Spreading knowledge is good, if Zakat gets implemented properly it can turn Pakistan into a powerhouse

 

[Jeeten Parikh]

It shows the worlds biggest superpower having 90% intangible assets and 10% tangible assets, the value of intangible assets. This is investment people will have houses and cars etc that makes up their wealth which Zakat will be payable upon. Zakat is on wealth 2.5%.

Because it’s the fastest way to become first world country. Less investments in land and real estate, propping up their prices creating a bubble like scenario to more towards companies with high amounts of intangible assets that have good R&D. Learn how to mine, refine, design and manufacture, goods and services.

i understand what you say. I am trying to point out some aspects that can and will go terribly wrong in that approach.
FOr example, there will be lot fewer houses built. DO you think the construction/cement, steel rod etc factory workers thus driven out of job will instead go to work on ChatGPT or vaccine development? It needs a different brain!

 

[AZADPAKISTAN2009]

Spreading knowledge is good, if Zakat gets implemented properly it can turn Pakistan into a powerhouse

Zakat or Taxation , for purpose to help needy yes it is a great initiative in it's purest form or intent

If anyone is financially stable


In a ideal world