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ZAKAT AND USHR ORDINANCE, 1980

CONTENTS

CHAPTER

Section

Preliminary

 

1.

 Short title, extent, application and commencement.

 

2.

Definitions.

 

CHAPTER

ZAKAT

3.

 Charge and Collection of Zakat.

 

4.

Secrecy of information.

 

CHAPTER III

USHR

5.

 Charge and collection of Ushr.

 

6.

Mode of assessment and collection of Ushr.

 

CHAPTER IV

ZAKAT FUNDS

7.

 Establishment of Zakat Funds.

 

8.

Utilization of Zakat Funds.

 

9.

Disbursements from Zakat Funds.

 

10.

Accounts.

 

11.

Audit

 

CHAPTER V

ORGANIZATION AND ADMINISTRATION

12.

 Central Zakat Council.

 

13.

Administrator-General.

 

14.

Provincial Zakat Council.

 

15.

Chief Administrator.

 

16.

District Zakat and Ushr Committee.

 

17.

Tehsil, taluqa or Sub-divisional Zakat and Ushr Com­mittee.

 

18.

Local Zakat and Ushr Committee.

 

19.

Vacancy, etc., not to invalidate acts or proceedings.

 

20.

Person to presideat meetings in the absence of Chairman.

 

21.

Power of suppression and removal.

 

21.

A Vote of no-confidence against the Chairman of a Tehsil, Taluqa, or Sub-divisional Committee or a Local Committee or the member of a Local Committee.

 

22.

Officers and staff.

 

23.

Certain persons to be public servants.

 

CHAPTER VI

MISCELLANEOUS

24.

Exemption.

 

25.

Certain tax concessions.

 

26.

Power to make rules.

 

27.

Power to call for information and issue directions,

 

28.

Indemnity and bar of jurisdiction.

 

29.

Removal of difficulties.

 

30.

Repeal.

 

 

FIRST SCHEDULE.

 

 

SECOND SCHEDULE.

 

 

ZAKAT AND USHR ORDINANCE, 1980.

ORDINANCE No XVIII OF 1980

20th June, 1980

 An Ordinance to make provisions relating to the assessment, collection and disbursement of Zakat and Ushr.

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 Pakistan, being an Islamic State, must provide for the implementation of Islamic precepts ;

 

And whereas the Constitution of the Islamic Republic of Pakistan lays down that the Muslims of Pakistan shall be en­abled to order their lives, in the individual and collective spheres, in accordance with the tenets of Islam ;

 

And whereas Zakat, including Ushr, is one of the funda­mental pillars (arkan) of Islam ;

 

And whereas the 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 Constitution also provides, in Article 31, that the State shall endeavour, as respects the Muslims of Pak­istan, to secure, inter alia, the proper organisation of Zakat ,

 

And whereas the President is satisfied that circumstances exist which render it necessary to take immediate action;

 

Now, therefore, in pursuance of the Proclamation of the fifth day of July, 1977, read with the Laws (Continuance in Force) Order, 1977 (C.M.L.A. Order No. 1 of 1977), and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance :—

 

CHAPTER I

PRELIMINARY

 

1.— Short title, extent, application and commencement. (1) This Ordinance may be called the Zakat and Ushr Ordinance, 1980.

 

(2) It extends to the whole of Pakistan, but i as regards payment and recovery of Zakat and Ushr applies only to Muslim citizens of Pakistan and a company, or other associa­tion of persons, or body of individuals, whether incorporated or not, majority of the shares of which is owned, or the beneficial ownership of which is held, by such citizens.

 

(3) In respect of a person who may believe that the whole or any part of the recoveries effected from him in the manner laid down in this Ordinance are not according to his belief, such recoveries shall nevertheless be made, but shall be deemed to be contribution to Zaktat Fund on the part of that person.

 

Provided that no Zakat or Ushr shall be charged or collected on compulsory basis in respect of the assets or the produce of a person who, within the period of three months preceding the Valua­tion Date, files with the Deducting Agency, or with the Local Committee in the case of Ushr, a declaration in the prescribed form sworn by him before a magistrate, an Oath Commissioner, a notary public or any other person authorised to administer oath, in the presence of two witnesses who identify him, to the effect that he is a Muslim and a follower of one of the recognised fiqhs, which he shall specify in the declaration, and that his faith and the said fiqh do not oblige him to pay the whole or any part of Zakat or Ushr in the manner laid down in this Ordinance:

 

Provided further that where for any reason Zakat or Ushr is collected on compulsory basis from such a person and he does not wish to leave it in the Zakat Fund as sadaqah or khairat in the name of Allah as a manifestation of the unity of the Ummsh and claims refund, on the basis of a declaration as aforesaid filed by him within the .period specified in the first proviso or within such further period as may be prescribed, the amount so collected shall be refunded to him in the prescribed manner.

 

Explanation.—In this Ordinance, reference to Zakat deduc­tible at source or to Ushr realizable on compulsory basis shall be construed to imply a reference to contributions to Zakat Fund also.

 

(3A) The Federal Shariat Court may, on the application of any person, decide the question whether a declaration such as is referred to in the first or second proviso to sub-section (3) made by any person is valid according to the fiqh he professes to follow; and, if the Federal Shariat Court decides that the declara­tion is not valid, such person shall, without prejudice to any other action that may be taken against him under any other law, be liable to pay Zakat or Ushr, as the case may be, in the manner laid down in this Ordinance.

 

(4) It shall come into force on such date as the Federal Government may, by notification in the official Gazette, appoint, and different dates may be appointed for different provisions of this Ordinance.

 

2. Definitions. In this Ordinance, unless there is anything repugnant in  the subject or context,—

 

(i)  Administrator-General  means the person appointed as such under section 13, and includes an officer au­thorised by him to exercise or perform any power or function of Administrator-General under   this Ordinance ;

 

(ii)  annuity means the sum payable periodically, ac­cording to the annuity policy conditions, to an an­nuitant during his life-time, or for a fixed number -of years, as the case may be, and includes the scheme of postal annuities as notified by the Government ;

 

(iii)  assets means assets liable to Zakat as provided in this Ordinance ;

 

(iv)  atiyyat means voluntary donations to the Zakat Funds, otherwise than on account of Zakat or Ushr, and includes sadaqat-e-nafilah;

 

(v) Central Council  means the Council established under section 12 ;

 

(vi)  Chief Administrator means a person appointed as such under section 15, and includes an officer au­thorised by him to exercise or perform any power or function of Chief Administrator under this Ordinance ;

 

(vii)  company  means a company as defined in the Com­panies Act, 1913 ;

 

(viii)  Deducting Agency means a bank, post office or other institution referred to in the sixth column of the First Schedule ;

 

(ix)  Deduction Date means, in respect of the assets mentioned in the First Schedule, the date or dates on which Zakat is to be deducted at source and which is or are specified in the fifth column of that schedule;

 

(x)  District Committee  means a Committee constituted under section 16 ;

 

(xi)  Government security has the same meaning as in the Securities Act, 1920 ;

 

(xii)  insurer means the State Life Insurance Corporation of Pakistan or Postal Life Insurance ;

 

(xiii)  Local Committee means a committee constituted under section 18 ;

 

(xiv)  locality means the area within the jurisdiction of a Local Committee ;

 

(xv)  maturity value means the sum payable, according to stipulated conditions, on survival of the life assured to the specified age or

 to the end of the term of the policy ;

 

(xva)  nisab, in relation to assets liable to Zakat, except agricultural produce and animals fed free in pastures, means 612.32 grams of silver, or cash or gold, or goods for trade, or any assets liable to Zakat under Shariah, the aggregate value of which is equal to the value of 612.32 grams of silver, as notified by the Administra­tor-General for each Zakat year or, in the case of a person whose assets liable to Zakat consist only of gold, 87.48 grams of gold ;

 

(xvi)  prescribed means prescribed by rules;

 

(xvii)  produce  means gross agricultural, horticultural or forest produce ;

 

(xviii)  Provident Fund has the same meaning as in the Provident Funds Act, 1925 ;

 

(xix)  Provincial Council means a Council constituted under section 14 ;

 

(xx)  recognised Provident Fund  means a Provident Fund recognised as such, by the competent authority, under the Income Tax Ordinance, 1979 ;

 

(xxi)  return means income, howsoever described, accru­ing on an asset;

 

(xxii)  rules means rules made under this Ordinance;

 

(xxiii)  sahib-e-nisab  means a person who owns or possesses assets not less than nisab, but does not include—

 

(a) the Federal Government, a Provincial Govern­ment or a local authority ;

 

(b) a statutory corporation, a company or other enterprise, owned wholly, directly or indirectly, by the Federal Government, a

 

Provincial Govern­ment, a local authority or a corporation owned by the Federal Government or a Provincial Government, either singly or jointly with one or more of the other three ;

 

(c) a subsidiary of a statutory corporation, a com­pany or other enterprise referred to in sub-clause (b) and wholly owned by it;

 

(d) the National Investment (Unit) Trust;

 

(e) an ICP Mutual Fund ;

 

(f) a recognized Provident Fund ;

 

(g) any Unit Fund maintained by the Defence Services, including the Civil Armed Forces ;

 

(h) a Zakat Fund ;

 

(i) an institution, fund, trust, endowment or society—

 

(a) registered as a charitable organisation under the Societies Registration Act, 1860, or as a company under section 26 of the Companies Act, 1913, or registered or approved as a charitable or social welfare organisation under any other law for the time being in force, and

 

(b) approved by the Central Board of Revenue for the purposes of section 47 of the Income Tax Ordinance, 1979 ;

 

(j) a deem madrasah registered as such by the Auqaf Department ;

 

(k) a mosque;

 

(l) an orphanage registered as such under the law relating to orphanages ;

 

(m) a Workers Participation Fund established under the Companies Profits (Workers Participation) Act, 1968 ; or

 

(n) amount of a party to a suit or case kept with or under the orders of a court pending decision of the suit or case ;

 

(xxiv)  security means any stock, share, scrip, debenture, bond, pre-organisation certificate, or instrument commonly known as security ;

 

(xxv)  share  means a share in the share-capital of a com­pany, or in any body corporate established by or under a Federal law or a Provincial law, and includes stock ;

 

(xxvi)  sub-division means a sub-division of the district of

 

Lahore and the districts in the Karachi Division ;

 

(xxvii) surrender value means the sum payable by an in­surer on cancellation of a life-insurance policy or annuity, according to stipulated terms and conditions, at any time before maturity benefits become avail­able ;

 

(xxviii)  survival benefit means the amount payable accord­ing to life-insurance policy conditions, during the currency of a policy, on survival of the life assured to the specified date as stipulated in the policy ;

 

(xxix)  Tehsil Committee  or  Taluqa Committee  or  Sub-divisional Committee  means a committee constituted under section 17 ;

 

(xxx)  Valuation Date means—

 

(a) in respect of assets liable to Zakat, the first day of the Zakat year ; and

 

(b) in respect of produce liable to Ushr, such date or dates as may be prescribed or as may be noti­fied by the Administrator-General or by a Chief Administrator within his jurisdiction ;

for the evaluation of assets or the produce for the purposes of this Ordinance;

 

(xxxi)  Zakat Fund means a Fund established under section 7 ;and

 

(xxxii)  Zakat year means year according to the Hijra calen­dar for which Zakat is chargeable, commencing on the first day of

Ramadhan-ul-Mubarak and ending with the last day of the following Shaban-ul-Moazzam :

 

Provided that the first Zakat year shall commence with the commencement of this Ordinance and end with the last day of Shaban-ul-Moazzam,  1401 A.H.

 

CHAPTER II

ZAKAT

 

3.—charge and collection of Zakat. (1) Subject to the other provisions of this Ordinance, Zakat in respect of assets mentioned in the First Schedule shall be charged and collected, on compulsory basis, for each Zakat year, at the rates and in the manner specified therein, and as may be prescribed, from every person Who is on the Valuation Date, and has for the preceding Zakat year been, sahib-e-nisab).

 

Provided that where an asset mentioned in the First Schedule has been assigned by the person owning or possessing it, in favour of another person, Zakat in respect of that asset shall be charged and collected on compulsory basis as if the asset had not been so assigned.

 

Provided further that, if an asset was owned or possessed by a person on the Valuation Date but is owned or possessed by some other person on the Deduction Date the Zakat on such asset shall be charged and collected from such other person on behalf of the person owning or possessing it on the Valuation Date :

 

Provided further that, if a person proves in the prescribed manner to the satisfaction of the Local Committee of the locality where he ordinarily resides that he was not a sahib-e-nisab on the Valuation Date or was not in ownership or possession of assets of the value of nisab for the whole of the preceding Zakat year, Zakat shall not be so charged and collected from him, or if collected shall be refunded to him in the prescribed manner :

 

Provided further that no Zakat shall be charged and collected from the assets of a person who died on or before the Deduc­tion Date,

 

(2) In determining the amount to be collected as Zakat on compulsory basis, the value of an asset on which Zakat is deducti­ble at source may be reduced, to the extent and in the manner prescribed, only on account of debts which have been—

 

(a) primarily secured by that asset;

 

(b) used for the creation of an asset Oft which Zakat is

deductible at source ; and

 

(c) obtained from the Deducting Agency having custody of the asset securing the debt and of the asset created under clause (b).

 

(3) Where a person from whom Zakat has been deducted at source—

 

(a) proves that—

 

(i) he is not a Muslim, or

(ii) he is not a citizen of Pakistan, or

(iii) the amount deducted from him is more than what is due under this Ordinance, either on account of an error apparent from the record, or on account of reduction provided for in sub-section (2) not having been duly allowed to him, or

(iv) he falls under any of the exclusions given in sub-clauses (a) to (n) of clause (xxiii) of section 2, or

 

(b) proves, as laid down in the third proviso to sub-section (1), that he is not a sahib-e- nisab or was not in owner­ship or possession of nisab for the whole of the prece­ding Zakat year, or

 

(c) files a declaration such as is referred to in the second proviso to sub-section (3) of section 1, which has not been challenged in the Federal Shariat Court under sub-section (3A) of that section, and claims refund. the amount so deducted or, as the case may be, the amount so deducted in excess shall be refunded to him in the prescribed manner.

 

(4) Where the recovery of Zakat deductible at source, in respect of any of the assets mentioned in the First Schedule, falls into arrears, the Administrator-General may forward to the Collector of the district concerned a duly signed certificate specifying the amount of arrears due and the particulars of the person from whom due, and the Collector shall, on receipt of such certificate, proceed to recover the amount so specified, as if it were an arrear of land revenue.

 

(5) A sahib-e-nisab may pay either to a Zakat Fund or directly to those eligible under Shariah to receive Zakat so much of the Zakat due under Shariah as is not deductible at source under this Ordinance, for example, that due in respect of assets men­tioned in the Second Schedule.

 

(6) Any amount deducted at source by the Deducting Agency from any person shall be treated as payment of Zakat on behalf of such person or, in the case of a person referred to in sub-section (3) of section 1, as contribution to Zakat Fund or sadqah or khairat in the name of Allah, as the case may be, on the part of that person..

 

4. Secrecy of information. Any information furnished or collected in connection with the deduction of Zakat at source under this Ordinance shall be treated as secret and shall not be used for any other purpose, including the assessment or collection of any tax.

 

CHAPTER III

USHR

 

5.— Charge and collection of Ushr. (1) Subject to the other provisions of this Ordinance, there shall be charged and collected, on compulsory basis, in such manner as is laid down in section 6, and as may be prescribed, from every land-owner, grantee, allottee, lessee, leaseholder or land-holder (other than a person excluded from the definition of sahib-e-nisab) Ushr at the rate of five per cent of his share of the produce, as on the Valuation Date :

 

Provided that if any plot of land is used principally for growing one crop and a small portion thereof, not exceeding one-fourth of an acre, is used for growing another crop, Ushr shall not be charged in respect of the produce of such small portions.

 

Explanation—in this section and section 6, land-owner grantee , allottee ,  lessee ,  lease-holder  and land-holder shall have the same meaning as in the laws relating to land administration and land-holder includes a person in possession of any plot of land who has grown a crop on such plot.

 

(2) An individual land owner, grantee, allottee, lessee, lease­holder or land-holder shall be exempt from the compulsory levy of Ushr if—

 

(a) he is eligible under Shariah to receive Zakat; or

 

(b) the produce from his land is less than five wasqs (—948 Kilograms) of wheat, or its equivalent in value in the case of other crops liable to Ushr.

 

(3) The currency equivalent of five wasqs of wheat in value shall be such as may be notified for each Zakat year by the Administrator-General.

 

(4) Ushr shall be the first charge on the produce.

 

(5) Ushr shall be collected in cash :

 

Provided that, where the produce consists of wheat or paddy, Ushr, at the option of the Provincial Council, may be collected in Kind.

 

(6) A sahib-e-nisab may pay either to the Local Zakat Fund or directly to those eligible under Shariah to receive Zakat, so much of the Ushr due under Shariah as is not compulsorily realizable under this Ordinance, for example, in respect of item 9 of the Second Schedule.

 

6. – Mode of assessment and collection of Ushr.  (1) A Local Committee shall be supplied by the Revenue Department, and such other department or official agency or any other person as may be determined by the Chief Administrator in respect of a land-owner, grantee, allottee, lessee, lease-holder or land-holder in the locality, in the prescribed form and manner, with the record containing such information for a crop season as may be required for the purposes of this Ordinance.

 

(2) An assessee may compute his Ushr liability on self-assessment basis and communicate the same to the Local Com­mittee in such form and manner as may be prescribed and, while so computing his Ushr liability, shall be entitled to reduce as an allowance for expenses on production one-fourth of the total value of his produce.

 

(3) If the Local Committee finds that an assessees self-assessment of his Ushr liability is acceptable, it shall notify it to the assessee as the Ushr demand of that assessee.

 

(4) Where an assessee fails to communicate to the Local Com­mittee his self-assessment of Ushr liability under sub-section (2), or a Local Committee does not find the self-assessment of the Ushr liability by an assessee acceptable under sub-section (3), the Local Committee shall, subject to such guidelines and instructions as may be given by the Provincial Council or, if so authorised by the Provincial Council, by the District Committee, after taking into consideration the information furnished to it under sub-section (1) and any other information that it may deem relevant, adopting such procedure as it may deem fit, and allow­ing the reduction provided for in sub-section (2), make in the prescribed form and manner, its own assessment of Ushr rea­lizable on compulsory basis under this Ordinance, and notify the demand to the assessee.

 

(5) In the case of a lease in force immediately before the commencement of this Ordinance, the liability of the lessor and the lessee to pay Ushr shall be equitably apportioned between them by the Local Committee.

 

(6) An assessee aggrieved by the assessment under sub­section (4), or, as the case may be, the lessor or the lessee aggrieved by the apportionment under sub-section (5) may, within such time as may be prescribed apply in the prescribed form and man­ner to the Local Committee, for a review of the assessment or, as the case may be, the apportionment.

 

(7) The Local Committee shall, within such time as may be prescribed, give its decision on the application for review, and such decision shall be final and shall not be questioned before any Court or other authority.

 

(8) The demand as determined, under sub-section (3), or, as the case may be, under sub-section (4) or sub-section (7), shall be paid by the assessee and collected by the Local Committee in such manner as may be prescribed.

 

(9) Where the recovery of Ushr compulsorily realizable under this Ordinance falls into arrears, the Chairman of the Local Committee shall forward to the Collector of the district concerned, a duly signed certificate specifying the amount of arrears due and the particulars of the person from whom due, and the Collector shall, on receipt of such certificate, proceed to recover the amount so specified as if it were an arrear of land revenue.

 

 

CHAPTER IV

ZAKAT FUNDS

 

7.  There shall be established the following Zakat Funds, namely,- –

 

(a) a Central Zakat Fund to which shall be credited—

 

(i) the Zakat deducted at source ;

 

(ii) the Zakat paid into it voluntarily ;

 

(iii) the transfers, if any, from the Provincial Zakat Funds ; and

 

(iv) the grants, atiyyat and any other receipts ;

 

(b) a Provincial Zakat Fund for each Province to which shall be credited—

 

(i) the transfers to it from the Central Zakat Fund ;

 

(ii) the Zakat paid into it voluntarily ;

 

(iii) the transfers, if any, from the Local Zakat Funds; and

 

(iv) the grants, atiyyat and any other receipts; and

 

(c) a Local Zakat Fund for each Local Committee to which shall be credited—

 

(i) the proceeds of Ushr ;

 

(ii) the Zakat paid into it voluntarily ;

 

(iii) the transfers to it from the Provincial Zakat Fund; and

 

(iv) the grants, atiyyat and any other receipts.

 

8. Utilization of Zakat funds. The moneys in a Zakat Fund shall be utilized for the following purposes, namely,—

 

(a) assistance to the needy, the indigent and the poor, particularly orphans and widows, the handicapped and the disabled, eligible to receive Zakat under Shariah, for their subsistence or rehabilitation, either directly or indirectly through deem madaris or vocational educational institutions or public hospitals, clinics, dispensaries or health laboratories :

 

Provided that the lists of the individual to be assisted directly, and of the institution through which assistance is to be given, from a Local Zakat Fund shall be prepared and main­tained, according to prescribed basis and manner, by the Local Committee in whose jurisdiction the indi­viduals ordinarily reside, or the institutions through which they are to be assisted arc situated, as the case may be:

 

Provided further that the list of institutions thro­ugh which assistance from Provincial Zakat Fund is to be given shall be prepared and maintained according to prescribed basis and manner, by the Provincial Council in whose jurisdiction these are situated ; and

 

(b) expenditure on the collection, disbursement and ad­ministration of Zakat and Ushr :

 

Provided that the expenditure on the Central Zakat Council and the administrative organisation of the Administrator-Genera shall be met by the Federal Government, that on a Provincial Zakat Council and the administrative organisation of a Chief Adminis­trator, and that on a District Committee, Tehsil Committee, Taluqa Committee or Sub-divisional Committee, by the Provincial Government concerned, and that on a Local Committee from the Local Zakat Fund not exceeding ten per cent of the receipts in that Fund during the year :

 

Provided further that the banking services and the services connected with the assessment or collec­tion of Zakat or Ushr realizable on compulsory basis under this Ordinance shall be rendered free of charge, except that the Administrator-General, or a Chief Administrator in regard to Ushr, may authorise pay­ment of remuneration for any specified services ; and

 

(c) any other purpose permitted by Shariah.

 

9.— Disbursements from Zakat Funds. (1) The Central Council may from the Central Zakat Fund make disbursements, and transfer funds to a Provincial Zakat Fund, in such form and manner as may be prescribed. and as would help in ensuring satisfaction of the needs of the needy and the poor throughout the country, as far as possible, on a uniform basis.

 

(2) A Provincial Council may from the Provincial Zakat Fund make disbursements, and transfer funds to a Local Zakat Fund, in such form and manner as may be prescribed and as would help in ensuring satisfaction of the needs of the needy and poor throughout its jurisdiction, as far as possible, on a uniform basis :

Provided that a Provincial Council may, in exceptional cir­cumstances, transfer funds from the Provincial Zakat Fund to the Central Zakat Fund.

 

(3) A Local Committee shall disburse, or incur expen­diture from, the Local Zakat Fund, in the prescribed manner, for authorised purposes within the locality, particularly for the benefit of the individuals directly or indirectly under clause (a) of section 8 :

 

Provided that a Local Committee may or, if so required by the Provincial Council, shall, transfer from the Local Zakat Fund to the Provincial Zakat Fund, funds surplus to its needs.

 

10.— Accounts. (1) The accounts of the Central Zakat Fund, a Pro­vincial Zakat Fund and a Local Zakat Fund shall be maintained and operated, respectively, by the Administrator-General, the Chief Administrator, and the Local Committee, in such form and manner as may be prescribed,

 

(2) The records of the accounts of the Zakat Funds shall be preserved for such period, and shall be made available for audit or inspection to such persons or agencies, and in such manner, as may be prescribed.

 

11.— Audit. (1) To carry out audit of the Central Zakat Fund annually or at shorter intervals, the Central Council, and to carry out audit of a Provincial Zakat Fund annually or at shorter inter­vals, the Provincial Council, shall appoint auditors,  being; of persons who are chartered accountants within the meaning of the 961, Chartered Accountants Ordinance, 1961.

 

(2) To carry out audit of the Local Zakat Funds within a district annually or at shorter intervals, the District Committee shall appoint auditors being persons who are, in its opinion, qualified for the purpose.

 

(3) The audit performed by auditors under sub-sections (1) and (2) shall include propriety audit.

 

(4) The annual report of the auditors on the Central Zakat Fund shall be laid before the Parliament, that on a Provincial Zakat Fund before the Provincial Assembly concerned, and that on Local Zakat fund before the District Council concerned established under the law relating to local government.

 

(5) Nothing in this section shall be deemed to prevent—

 

(a) the Auditor-General of Pakistan from auditing any of the Zakat Funds ;

 

(b) the Central Council from getting audited any of the Provincial or Local Zakat Funds ;

 

(c) the Provincial Council from getting audited any of the Local Zakat Funds within its jurisdiction ; or

 

(d) a Local Committee from getting its own Local Zakat Fund audited.

 

 

CHAPTER V

ORGANIZATION AND ADMINISTRATION

 

12.— Central Zakat Council. (1) The Federal Government shall, by notification in Hie official Gazette, establish a Central Zakat Council to provide policy guide-lines for, and to exercise general superintendence and control over matters relating to Zakat and Ushr, particularly the Zakat Funds and maintenance of their accounts.

 

(2) The Central Council shall consist of—

 

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