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

[Genghis khan1]

those who do not meet the work quota do not get to eat.

They don’t get off or sleep until they meet their daily quota. Keep them fed, gotta keep those machine moving by healthy bodies.

 

[PeterboroughAli]

Unlikely, as it has made no difference in any country. Only thing that matters is skill and talent of people.

Amazon.com

Please have a read of this article

Nigeria should invest in research, innovation

Nigeria’s abysmal contribution to global research, particularly in tropical diseases and medicine, was brought recently into focus by stakeholders at a forum, where they bemoaned the country’s failings despite its ample supply of manpower.

punchng.com

if we develop 6th gen planes, make semi condoctors that we export to China, Japan, USA, make cars that we export to other nations We can get to being a first works nation. Resource poor nations like us need to hustle. If we get a good leader I can see it all happening.

How do we get to 6th gen planes and semi conductors, through research and development, through Zakaat

Pakistan gave away all its export potential to China and India and even Bangladesh and its been doing this for decades.

Research and development is underrated and Pakistan is not conducting it

Hi,

Zakat is no miracle. It is taxes that are needed---. Either it is taxes---or it is zakat.

I would pick Zakat taxes don’t work for Pakistan

 

[EasyNow]

Zakat is a beautiful thing but I think you're being naive.

To say zakat will make Pakistan an intangible asset economy is like saying zakat will solve corruption. People are not so straight forward. It'll be the same problems under a new tax regime.

The only way to grow r&d is cutting edge education and investment in manufacturing sector

 

[PeterboroughAli]

Proper implementation of any form of governance would improve Pakistan 100 fold.

The brothers point about Zakat should not be overlooked. Every single country in the world could benefit from zakat - consider it a wealth tax, a way of redistributing the extreme hoarding of hyper capitalism.

Properly implemented it'd encourage less dead investment in real estate and land, itd encourage investment into things that generate actual wealth for the economy and it would lift the most vulnerable people in society out of poverty. It could be used to tackle malnutrition, clear debt of the poor, provide seed money to the poor, scholarships.

Unfortunately it will not happen whilst the corrupt are in charge.

Mash Allah you are very knowledgeable, Pakistan investment is done in easy land and real estate, to make good money in future you will have to invest in the next big thing which will be harder. More startups etc in fields varied such as agriculture, pharmaceuticals, defence, IT etc.

 

[TNT]

Actually many here dont even understand the difference between zakaat and tax.
Zakaat is a tax but different. Tangible or intangible, zakaat is paid on wealth that have been there for a year. And it is not once, if another year passes, ull pay again for the same wealth.
If you have a salary that u spend it all every month and have no savings then u dont need to pay zakaat, its paid on savings and wealth. If i have a salary that i fully spend every month but have 1 crore in bank saved, ill have to pay minimum 2.5℅ after a year, so ill have 97.5 laakh left. If another year passes, i spend my salary and the same 97.5 laakh still remains after a year, ill pay again a 2.5℅ zakaat on the 97.5 laakh i have. I will have to keep paying zakaat on that saving every year, reducing it every year.
This system thus discourages hoarding and saving wealth and encourages spending it, which actually helps and enhances the economy. It encourages circulation of wealth, which we all know enhances economy.

 

[PeterboroughAli]

"Intangible" assets are wealth if they can be sold for tangible assests. For example, an invention, even though not yet manufactured, if it is recorded and protected by a patent, can be sold for tangible assets and is therefore wealth. Similarly, a trademark, such as "Coca-Cola", if registered as such in a country, can be sold in that country for tangible assets and is wealth. Business "goodwill", which is like a trademark in that it captures that a certain named business provides good products or services, is a value that can be sold to others, therefore is wealth.

However mainly intangible assets is knowledge and nowhere in Islam it says you have to pay Zakat on knowledge.

For instance knowhow(knowledge) of how to mine, refine, design and manufacture products and services.

Zakat is a beautiful thing but I think you're being naive.

To say zakat will make Pakistan an intangible asset economy is like saying zakat will solve corruption. People are not so straight forward. It'll be the same problems under a new tax regime.

The only way to grow r&d is cutting edge education and investment in manufacturing sector

South Korea had corruption and still managed to become a intangible asset powerhouse.

 

[teX]

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?

I think lower class (majority) already runs on zakat/donations mostly in Pakistan.
Thats why you see people don't standup easily for there rights because they somehow get it. And mostly middle class does this kind of charity, which is good.

Rich/Elite want this system to continue, zakat that govt collects goes to drain mostly (i don't trust that atleast).

 

[PeterboroughAli]

Actually many here dont even understand the difference between zakaat and tax.
Zakaat is a tax but different. Tangible or intangible, zakaat is paid on wealth that have been there for a year. And it is not once, if another year passes, ull pay again for the same wealth.
If you have a salary that u spend it all every month and have no savings then u dont need to pay zakaat, its paid on savings and wealth. If i have a salary that i fully spend every month but have 1 crore in bank saved, ill have to pay minimum 2.5℅ after a year, so ill have 97.5 laakh left. If another year passes, i spend my salary and the same 97.5 laakh still remains after a year, ill pay again a 2.5℅ zakaat on the 97.5 laakh i have. I will have to keep paying zakaat on that saving every year, reducing it every year.
This system thus discourages hoarding and saving wealth and encourages spending it, which actually helps and enhances the economy. It encourages circulation of wealth, which we all know enhances economy.

Thank you Zakat system can do wonders for any economy

I think lower class (majority) already runs on zakat/donations mostly in Pakistan.
Thats why you see people don't standup easily for there rights because they somehow get it. And mostly middle class does this kind of charity, which is good.

Rich/Elite want this system to continue, zakat that govt collects goes to drain mostly (i don't trust that atleast).

Sums that need to be collected are not collected and people somehow think it’s on earning but it is on wealth, tangible assets you have

 

[Indos]

Actually many here dont even understand the difference between zakaat and tax.
Zakaat is a tax but different. Tangible or intangible, zakaat is paid on wealth that have been there for a year. And it is not once, if another year passes, ull pay again for the same wealth.
If you have a salary that u spend it all every month and have no savings then u dont need to pay zakaat, its paid on savings and wealth. If i have a salary that i fully spend every month but have 1 crore in bank saved, ill have to pay minimum 2.5℅ after a year, so ill have 97.5 laakh left. If another year passes, i spend my salary and the same 97.5 laakh still remains after a year, ill pay again a 2.5℅ zakaat on the 97.5 laakh i have. I will have to keep paying zakaat on that saving every year, reducing it every year.
This system thus discourages hoarding and saving wealth and encourages spending it, which actually helps and enhances the economy. It encourages circulation of wealth, which we all know enhances economy.

Wealth is also taxed in many countries, including in Indonesia. If we have land, it will be taxed every year despite it is not a productive land. If you have big house in good neighborhood then it will be taxed quite high every year.

Zakat and Tax is basically the same, the different is that Tax is imposed by government where the usage is for anything, while Zakat is asked by God and the usage is only for the poor

Good Muslim should pay both Tax and Zakat

 

[PeterboroughAli]

Wealth is also taxed in many countries, including in Indonesia. If we have land, it will be taxed every year despite it is not a productive land. If you have big house in good neighborhood then it will be taxed quite high every year.

Zakat and Tax is basically the same, the different is that Tax is imposed by government where the usage is for anything, while Zakat is asked by God and the usage is only for the poor

Good Muslim should pay both Tax and Zakat

I disagree, Zakat can be forcibly taken by governments I believe Ridda wars. Also the amount of 2.5% is not given much due.

If you have a property worth 100,000 with 5% rent of 5,000. 2,500 will be taken by Zakat payments. That is 50% of rental income. Leaving you with yearly return of 2,500.

If you have a share in a company worth 100,000 with 90% intangible assets and 10% tangible assets, with 5,000 profit a year. You will pay Zakat on tangible assets of 10,000 of 250. Leaving you with 4,750 yearly return.

People will start investing more in intangible heavy assets such as shares. Rather than land and real estate investment.

Company shares that become well capitalised will be able to invest in R&D

 

[Indos]

Wealth is also taxed in many countries, including in Indonesia. If we have land, it will be taxed every year despite it is not a productive land. If you have big house in good neighborhood then it will be taxed quite high every year.

Zakat and Tax is basically the same, the different is that Tax is imposed by government where the usage is for anything, while Zakat is asked by God and the usage is only for the poor

Good Muslim should pay both Tax and Zakat

During early Muslim when prophet Muhammad starts making a nation (Madinah), this Zakat function is quite similar with tax. Zakat for Muslim and tax for Non Muslim, it makes the country runs and can have professional soldiers.

This is why Abu Bakar attack one Muslim community who dont want to pay Zakat since the function at that time is quite similar like tax, it will be seen as rebellion to the government.

In modern time, government impose tax as well and Zakat is regarded as individual choice where the obligation and punishment is within God territory. So modern government doesnt interfere much despite they can make gov body who will manage Zakat from its citizen money, but the collection is voluntarily.

 

[PeterboroughAli]

During early Muslim when prophet Muhammad starts making a nation (Madinah), this Zakat function is quite similar with tax. Zakat for Muslim and tax for Non Muslim, it makes the country runs and can have professional soldiers.

This is why Abu Bakar attack one Muslim community who dont want to pay Zakat since the function at that time is quite similar like tax, it will be seen as rebellion to the government.

In modern time, government impose tax as well and Zakat is regarded as individual choice where the obligation and punishment is within God territory. So modern government doesnt interfere much despite they can make gov body who will manage Zakat from its citizen money, but the collection is voluntarily.

I think they should collect Zakat were it’s due, again on tangible assets and not intangible assets, allowing them to flourish.

Chinese hackers took trillions in intellectual property from about 30 multinational companies

"We're talking about Blueprint diagrams of fighter jets, helicopters, and missiles," Cybereason CEO Lior Div told CBS News.

www.cbsnews.com

Intellectual property I.e. intangible assets, are worth trillions. Pakistan should be geared towards producing them. Rather than fighting over land which will stop as land won’t be worth investing in.

 

[PeterboroughAli]

Also a university degree is a intangible asset however no one thinks of paying Zakat on it. It is a intangible asset of a individual.

 

[epebble]

Please have a read of this article

Nigeria should invest in research, innovation

Nigeria’s abysmal contribution to global research, particularly in tropical diseases and medicine, was brought recently into focus by stakeholders at a forum, where they bemoaned the country’s failings despite its ample supply of manpower.

punchng.com

How do we get to 6th gen planes and semi conductors, through research and development, through Zakaat


Research and development is underrated and Pakistan is not conducting it


I would pick Zakat taxes don’t work for Pakistan

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/

 

[TNT]

Wealth is also taxed in many countries, including in Indonesia. If we have land, it will be taxed every year despite it is not a productive land. If you have big house in good neighborhood then it will be taxed quite high every year.

Zakat and Tax is basically the same, the different is that Tax is imposed by government where the usage is for anything, while Zakat is asked by God and the usage is only for the poor

Good Muslim should pay both Tax and Zakat

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