i. Economic and Social Benefits of Zakah

Elimination of Interest:

In economic system of interest, the capital is far greater than hard work. Therefore laborers and poor become poorer and needy day by day. A capitalist snatches their wealth through different tactics. In this way, economic system is handicapped. Zakah is the best solution of such circumstances. Due to this system a circle of wealth turn from rich to poor people and economic condition of poor improves. This fact is described with these words in Quran.

يمحق الله الربوا ويربي الصدقتِ (سورة البقرة: 276)

Translation: Allah destroys interest and gives increase for charities. 

Increase in Investment:

An advantage of paying Zakah is that also, a Zakah giver invests his money in any beneficial business to cover the financial gap due to paying Zakah and investment ratio, soars in this way. Since, ratio of Zakah is 2.5% only, therefore Zakah payer donates this amount happily compared to other heavy taxes. Morever, Zakah payer freely invests in business. On the other hand, the trend of hiding money due to fear of paying heavy taxes increases and economy of a country weakens due to this factor.

Circulation of Wealth:

Due to paying Zakah, wealth is not bound in a few hands but due to being transferred from rich to poor, the process of circulation of wealth continues. So, the economy of a country strengthens because of proper circulation of money.

Allah says in Quran:

كن لا يكون دُولَةٌ بَيْنَ الْأَغْنِيَاء مِنْكُمْ (سورة الشرق)

Translation: So that it will not be a perpetual distribution among the rich from among you.

Stability of Economy:

Economy of a country solidifies due to system of Zakah. Zakah payer invests his riches in a useful enterprise to fulfil the shortage of money and in this process; there is a growth in country's investment. The opportunities of business grow and the economy of a country becomes strong.

Barakah, (Blessing) in Wealth:

Barakah, blessing is produced in wealth, when Zakah is paid. The wealth doesn't decrease but it increases many a times. Whatever the rich spent in the way of Allah is regarded as loan.given to Allah and it is His promise that he will increase it manya times and would return.

Allah says in Quran: (Surah Taghabun verse 17)

Translation: If you loan Allah a goodly loan, He will multiply it for you and forgive you. And Allah is most appreciative and forbearing.

Decrease in Poverty:

There is remarkable decrease in poverty due to paying of Zakah. Zakah is taken from The rich people and it is distributed among the poor. Therefore, it is the best arrangement for nourishment of poor people. The needy ones are able to stand economically on their own. In this way, wealth goes out of a few hands and is distributed among many people and level of poverty reduces in a society.

Elimination of Beggary: It is helpful to eliminate the case of beggary from a society by paying Zakah.

The investors spend their money in profitable enterprise. Therefore, opportunities of jobs are produced and even condition of poor people becomes better economically due to paying of Zakah and beggary is finished.

ii. Social benefits of paying Zakah:

Mutual love between rich and poor people: By paying Zakah, love is produced between rich and poor people. When wealth is not available to fulfill the needs of poor people, then senses of hatred are created between rich and poor. When rich people fulfill the needs of their poor brothers, then there is a mutual love among them..

Elimination of evils: Many evils are wiped out from a society, when Zakah is paid. Many crimes and evils take place in a society due to severe poverty. There is. an elimination of these crimes due to Zakah and poverty level is reduced in a society.

End of Greed: Greed is finished because of paying Zakah and spirit of contentment and generosity is produced in a person's heart. A society becomes peaceful and jealousy, greed and miserliness are finished in a society.

Spirit of Sacrifice: By paying Zakah, a Muslims gets the feelings of sympathy. welfare and sacrifice for others and a society progresses due to this factor.

Establishment of Islamic Social System: In a society, wealth has same value as blood has in human body. If this all blood is stored in heart (rich class), then besides paralyzing all body parts (means public), it will be damaging even for the heart. On one hand, a poor class faces issues of poverty, on the other hand, rich class of people will indulge in immoral diseases due to excess of wealth (for instance immoral diseases would be extravagant life negligence from Akhirah and care free attitude, Apparently, there will not be any relation left among all these sections except jealousy and hatred. With the passage of time, this discrimination. will increase and show its true colors.

In the context of all these individual and collective benefits, the following. instruction was given to Prophet Muhammad after creation of Islamic state of Madina.

خذ من أموالهم صَدَقَةٌ تُطَهِرُهُمْ وَتُزَكِّيهِمْ بِهَا - (سورة التوبة: 103)

Translation: Take, (O Muhammad), from their wealth a charity by which you purify them and cause them increase.