Our khutba today is about a financial act of worship which protects the soul from its greed and purifies it from stinginess. It is about Zakat.
The imam speaks of the following hadith in which the prophet SAWS said:
“Islam is built on five pillars; the Shahada that there is no god except Allah and Muhammad is the Messenger of Allah, establishment of Salat, payment of Zakat, Hajj and the fasting of Ramadan.”
It is very important that every believer in Allah should not underestimate and neglect this significant pillar of the religion and that he/she should happily pays his/her Zakat. One should remember that it is Allah Who has blessed one with the money he has, and He only obliged him to pay a small fraction of it (2.5%) as Zakat. Compare that to the tax we pay on income of around 30%. One should also remember that Allah SWT gives great reward for the payment of Zakat on the Day of Judgement.
Dear brothers there are two conditions for Zakat to be an obligation.
First condition that needs to be met is to own the Nisab (i.e. minimum amount of money or other type of wealth on which Zakat is payable.) This is £361 today based on the value of the defined 595 grams of silver.
The second condition that needs to be met is one must have the money in one’s possession for one lunar (Hijri) year.
The types of wealth on which Zakat is payable are:
- Gold and silver and banknotes (paper money) which is used nowadays instead of gold and silver as a measure of the value for goods and services.
- Goods stocked for trade. This is applicable to business owners.
- Grains fruits, cattle and minerals.
This khutba concludes with 3 points relating to Zakat for us all to ponder and apply practically.
Firstly, the easiest way to calculate Zakat is this case is to determine a day in the year (e.g. in Ramadan or beginning of the Hijri year) when one pays one’s Zakat. When this day 3 comes, one should add together all the money that one has. This includes cash in hand, money in bank(s) and the value of good for trade (if one has) etc. One should deduct debts which are due for payment – and out of the remaining, one should pay 2.5% .
The second point is about the recipient of the Zakat. It is about whether it is permissible or not to give Zakat to brothers and sisters if they are poor. The answer is yes, you can give your Zakat to your brothers and sisters if they are entitled for Zakat, However, you cannot give your Zakat to your parents or children.
Finally, one of the types of wealth on which Zakat is payable is goods which are stocked for trade. The Nisab is equal to that of paper money. At the end of year, the trader makes an evaluation of all the goods he has in stock. What is considered here is the sale value of the goods – not the purchase value. The amount which should be paid as Zakat is 2.5% of the total value of the goods. It is very important for shop owners to pay their Zakat. They must not forget or neglect it.
Dear brothers and sisters, zakat is a compulsory charity as instructed by the giver of our sustenance. It would be non-sensical to ignore this duty that is placed upon us. And by using this month as the financial end of year, we can fulfil the duty placed upon us as well as earn the extra reward of performing this great deed in the month of Ramadan.