Islamic Affairs Ministry Updates Zakat Threshold Following Market Changes
Zakat contributions being made by Maldivians | Photo: Islamic Ministry
The Ministry of Islamic Affairs has announced an increase in the minimum wealth threshold, or Nisab, required for the payment of Zakat, following a rise in the global prices of gold and silver.
As of yesterday, the Nisab for Zakat al-Mal—the obligatory almsgiving on property and cash held for a full lunar year—has been set at MVR 9,264.15. This marks an increase from MVR 7,140, which was the previous threshold set in January last year.
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Zakat is mandatory for Muslims whose wealth equals or exceeds the Nisab value over the course of a lunar year. The amount payable is typically calculated at 2.5 percent of the total value of eligible assets.
The Ministry attributed the adjustment to fluctuations in the global market prices of silver and gold, the two commodities traditionally used to determine the threshold. Currently, silver is traded at MVR 15.57 per gram, while the price of gold stands at MVR 1,601.52 per gram.
Scholars generally recommend using the value of silver to calculate the Nisab in smaller economies such as the Maldives, as it results in a lower threshold and therefore enables more people to fulfil their obligation and assist those in need.
The Maldives Inland Revenue Authority (MIRA) is responsible for collecting Zakat al-Mal on property and cash. According to official data, over MVR 100 million was collected under this category in the past year.
