FIRST SCHEDULE

ORDINANCE I OF 2011 ORDINANCE I OF 2011 BALOCHISTAN ZAKAT AND USHR ORDINANCE, 2011 An Ordinance to make provisions relating to the assessment, collection and disbursement of Zakat and Ushr [Gazette of Balochistan, Extraordinary, 22th April, 2011] No. Legis.1-52/Law/79-Vol-II/4371-72, dated 26-4-2011.---The following Ordinance made by the Governor of Balochistan on 22nd April, 2011 is hereby published for general information:-- Whereas it is necessary to make provisions relating to the assessment, collection and disbursement of Zakat and Ushr and matters connected therewith or incidental thereto. And Whereas Zakat, including Ushr, is one of the fundamental pillars (Arkan) of Islam; and prime objective, of the collection of Zakat and Ushr, and disbursements therefrom, is to assist the needy, the indigent and the poor; And whereas the rates of Zakat and Ushr, as also the purposes for the utilization of Zakat and Ushr, are specified in Shariah; And whereas Shariah enjoins all Muslims who are Sahib-e-Nisab to pay, and the State to arrange for the proper collection, disbursement and utilization of Zakat and Ushr, and also allows such Muslims to disburse for the purposes authorized by Shariah the part thereof not collected by the State; And whereas the Provincial Assembly of Balochistan is not in session and the Governor is satisfied that circumstances exist which render it necessary to take immediate action; Now, therefore, in exercise of the powers conferred by Article 128(1) of the Constitution of the Islamic Republic of Pakistan, 1973, the Governor is pleased to make and promulgate the following Ordinance:-- FIRST SCHEDULE (See sections 2 and 3) ASSETS SUBJECT TO COMPULSORY LEVY OF ZAKAT THROUGH''DEDUCTION- AT-SOURCE FOR CREDIT TO THE ZAKAT FUND S. No. ASSETS RATE AND BASIS FOR COMPUTING THP AMOUNT TO BE DEDUCTED AS ZAKAT 1 THE DEDUCTION DATE THE DEDUCTING AGENCY Savings Bank accounts and similar accounts by whatever name described with the Banks operating Post Offices, National Savings Centres and Financial institutions keeping such accounts 2.5% of the amount standing to the credit of an account at the commencement of the day on the valuation date (No deduction shall be made in case the amount standing to the credit of an account does not exceed the amount notified by the Chief Administrator) As notified by the Chief Administrator for the Zakat year The Bank, Office, Centre or institution as the case may be keeping the account. 2 Notice Deposit Receipts and accounts and similar receipts and accounts by whatever name described with the banks operating post offices, National Savings Centres and financial institutions issuing such receipts and keeping such accounts. 2.5% of the face value of a receipt or the amount standing to the credit of an account as the case may be at the commencement of the day on the valuation Date, in each Zakat year. The Date on which the first return is paid or the date of encashment/ withdrawal, . whichever be earlier in the Zakat year. The bank, office, Centre or institution, as the case may be issuing the receipt or keeping the account and responsible for paying the return or the amount en- cashed/ with- drawn. 3. Fixed Deposit Receipts and accounts and similar receipts 2.5% of the face value of receipt or certificate, or the The date on which the first return is paid. The bank, office, Centres, or institutions, and accounts and certificates (e.g. Khas, Deposit Certificates), by whatever name described, issued by the banks operating post office, National Savings Centres and financial institutions, on which return is receivable by the amount standing to the credit of an accounts as the case may be. As at the Valuation Date, in each Zakat year. Or the date of encashment/ redemption/ withdrawal, whichever be earlier in the Zakat year. as the case may be, issuing the receipt or certificate or keeping the account, and responsible for paying the return or encashment/ redemption/ withdrawal. holder periodically or is received earlier than maturity or withdrawal. 4. Savings/deposit certificates (e.g. Defense Savings Certificates, National Deposit Certificates), receipts and accounts by whatever name described, issued or kept by the banks operating in Post Offices, National Savings Centres financial institutions, companies and statutory corporations on which return is receivable and is received, ' by the holder, only on maturity or encashment. 2.5 % of the payable value of certificates or receipts or the amount standing to the credit of an account, as the case may be, as on the Valuation Date. The Date on which the maturity value is paid or of encashment/ withdrawal. The bank, office, centre, company or corporation, as the case may be, responsible for paying the return or the amount withdrawn, or redeeming en- cashing the certificates or receipts. 5. Units of the National Investment (Unit) Trust. 2.5% of the face value or repurchase value of the units whichever be lower, as on the Valuation, Date, in each Zakat year. The date on which the first return or the repurchase value is paid whichever be earlier in the Zakat year. The Trustee of the National Investment (Unit) Trust or its authorized' agent paying the return on, or the repurchase value of, the Units. 6. I.C.P. Mutual Fund Certificates. 2.5% of the face value, of the market value based on the closing rate at the Stock Exchange, Whichever be lower The date on which the first return is paid in the Zakat year. The Investment Corporation of Pakistan. as on the Valuation Date, in each Zakat year. 7. Government securities (other than prize bonds and certificates mentioned at serial numbers 3 and 4) on which return is receivable by the holder periodically. 2.5% of the face value of the Government securities as on Valuation Date, in each Zakat year. The date on which the first return is paid on the date of encashment! redemption, whichever be earlier in the Zakat year. The bank office or institution, as the case may be, responsible for paying the return or en- cashing/ redeeming the security. 8. Securities including shares and debentures (other than those mentioned at serial - numbers 5, 6 and 7 above), of companies or statutory corporations (excluding those held in the name of a company or a statutory corporation. On which return is payable periodically or otherwise, and is paid. If listed on the stock exchange, 2.5% The date on which the first return is paid, or the date of encashment redemption whichever be earlier in the Zakat year. The corporation, company or institution, as the case may be, responsible for paying the return or en- cashing! redeeming, the security. 9. Annuities. 2.5% of the amount of annuity benefit in each Zakat year and, in case of surrender, 25% of the surrender value on the Valuation Date, as the case may be. The date of first payment of the annuity benefit and of the surrender value. The insurer or the bank keeping and the amount in the form of an annuity. 10. Life insurance policies. 2.5% of the surrender value as on the advance, date in the Zakat year in which the policy matures survival benefit or benefit or surrender value is paid, as the case may be. The date of payment of (maturity value) or of survival benefit or of surrender value. The insurer. Provident funds. In case of non- refundable advance, 2.5% of the amount drawn or, in case of final settlement, 2.5% of the balance standing to the credit of the subscriber as on the Valuation date, excluding in both cases the employer's contribution and the return accrued thereon. The date of payment of the advance or of the balance. The authority officer or institution making, payment of the advance or of the balance. Note.---1. Deduction at source exceeding two and one-half per cent of the value of an asset specified in this Schedule shall not be made in respect of that asset within the same Zakat year. 2. No Zakat shall be charged on the amount paid as premium of a life insurance policy of a person from his Provident Fund and, where the proceeds of a life insurance policy of a person are credited to this Provident Fund during a Zakat year, to the extent of the proceeds so credited. 3, If the amount to be deducted at source as Zakat, in particular case, is less than a rupee, it shall not be charged, and, if it is more than a rupee but has a fraction of a rupee, fifty paisas and more shall be treated as the next higher rupee and less than fifty paisas shall not. be charged, where the entire amount of the return of balance is to be appropriated towards Zakat, and the amount contains a fraction of a rupee, this fraction shall not be so appropriated. The Deduction date shall be deemed to be a public holiday, for banks only, within the meaning of the Negotiable Instruments Act, 1881 (XXVI of 1881) Banks shall, however, remain open for their employees. In case the amount of the first return on any of the assets specified at S.Nos. 2, 3 and 5 to 8, 18 is than the Zakat due the entire amount of such return shall be appropriated towards Zakat and the unrealized balance shall be deducted from the subsequent returns paid during the same Zakat year or as the case may be, from the encashment or surrender value.