Implement ‘Zakat’ in private sector: MP

Manama : A lawmaker yesterday called for implementing the ‘Zakat’ rule in the Kingdom, demanding private establishments to pay a percentage of their annual net profits to the government.

MP Mohammed Al Ahmed yesterday presented a bill to implement the Zakat system, which is the third pillar of Islam that instructs the faithful to dedicate a percentage of one’s annual income to charitable causes, on private establishments.

His proposal instructs to make it mandatory for public and closed shareholding companies in Bahrain to pay 2.5 per cent of their annual net profit to the state.

“The absence of Zakat system in Bahrain contributed significantly to the creation of a gap between rich and poor classes in the society. This law will consolidate the efforts of many families of Bahraini merchants known for their charity work and those who established their private zakat offices,” said Al Ahmed, who’s also the Deputy Chairman of the Council’s Financial and Economic Affairs Committee.

“This legislation comes in line with the Islamic Sharia. These amounts should be deposited in the state exchequer. The Supreme Council for Islamic Affairs shall determine the aspects of disbursement of these amounts in accordance with the Islamic Sharia, whether it’s for the poor and the needy or those entitled to benefits such as the social and anti-inflation allowances, as well as pensioners,” the legislator said, adding that similar procedures are implemented in regional countries including Kuwait.

“The second Article of the Kingdom’s Constitution stipulates that Islam shall be the religion of the State, Islamic Sharia a main source of legislation, and Arabic the official language. Zakat is the third pillar of Islam. It is necessary to formulate a law to enforce the rule Islam,” the MP said in a letter attached to his proposal.

He called upon the Legislative and Legal Affairs Committee in the council to promptly look into the proposal before the end of the current legislative term, which is scheduled to end by next year.

The first article of the bill stipulates that “a percentage of 2.5 per cent shall be annually collected from the net profit of the Bahraini public and closed shareholding companies. These companies shall determine the amount of Zakat they’re obliged to annually pay while presenting their annual budget to the government”.

It also mentioned that they are granted the choice to dedicate a percentage of their Zakat to be donated to a public service or to the eligible needy parties.  

“Whoever submits false information or fails to provide it with the purpose of evading payment of the percentage referred to in the first paragraph of this first article shall be subjected to imprisonment for a term not exceeding three years and a fine not exceeding BD5000, or either with the judgment to pay the required amount,” The MP added.

The second article stipulates that the Finance Ministry shall collect the percentage prescribed in the first article in favour of the General Treasury of the State in the manner regulated by this law and its executive regulations.

The proposal was submitted to the committee which is tasked to study and review it before issuing its report within eight weeks from now.