Banks to remain closed on Tuesday for zakat deduction

KARACHI (Staff Report) - All commercial banks and financial institutions of the country will remain closed for public dealings on Tuesday, the first of Ramazan, with a view to deducting zakat from the deposits of their account holders.

According to the State Bank of Pakistan, Zakat will be deducted by banks from Saving Accounts, Profit and Loss Sharing Accounts and similar accounts with a credit balance of over 35,557 rupees on first of Ramazan.

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The imposition is made under the Zakat and Ushr Ordinance 1980.

Drawing from the tax slab rate for the fiscal year 2016/17, Rs 1,250 will be cut from each account with Rs. 50,000 or more.

Saving accounts with Rs. 0.1 million will see a cut worth Rs. 2,500. All the banks in the country will deposit Zakat due from all savings accounts to the national exchequer.