Islamic Finance

Bangladesh's Zakat Fund couldn't mobilise even 1.0pc of potential charity amount


Published 11 Sep,2021 via The Financial Express - Increasing affluence and digital money transactions have not contributed to swelling the government's Zakat Fund for redistribution in society, stakeholders admit.

Formed in 1982 through an ordinance, the Fund, operated under Bangladesh Islamic Foundation, collected a meager Tk 35.3 million in the 2020-2021 fiscal year, show official data.

An amount of Tk 300 billion could have been raised as Zakat, a mandatory Islamic charity to be paid at a rate of 2.5 per cent, in 2009, according to a study. Based on Bangladesh's current gross domestic product, applicable for 90 per cent Muslim population, Zakat amount may stand at about Tk 550-600 billion.

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The Financial Express