ORDINANCE XVIII OF 1980

ZAKAT AND USHR ORDINANCE, 1980

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

[Gazette of Pakistan, Extraordinary, Part I, 20th June, 1980]

No. F. 17(1)/80‑Pub.‑The following Ordinance made by the President 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 there with or incidental thereto;

And whereas Pakistan, being an Islamic State,. must provide for the imple mentation 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 there from, is to assist the needy, the indigent and the poor;

And whereas the rates of Zakat and Ushr, as also the purposes for the untilization 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 aliathe 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 andUshr Ordinance, 1980.

(2) It extends to the whole of Pakistan, but 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 Ordi nance are not according to his belief, such recoveries shall nevertheless be made, but shall be deemed to be contribution to Zakat Fund on the part of that person.

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.

(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.

  1. Definitions.‑‑In this Ordinance, unless there is anything repugnant in the subject or context‑ '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 lifetime, 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) 'atiyat' means voluntary donations to the Zakat Funds, otherwise than on account of Zakat or Ushr, and includes sadaqat‑e‑nufilah ;

(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 (VII of 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 (X of 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 Com?mittee;

(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;

(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 of 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 (XXXIof 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 is liable to pay Zakat or Ushr under this Ordinance; 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);

(d) the National Investment (Unit) Trust;

(e) an I. C. P. Mutual Fund;

(f) a recognised Provident Fund;

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

(h) a Zakat Fund; or

(f) an institution, fund, trust, endowment or society, registered as a charitable organization under the Societies Registration Act, 1860 (XXI of 1860), or a company registered :under section 26 of the Companies Act 1913 (VII of 1913), and approved by the Central Board of Revenue for the purposes of section 47 of‑the income‑tax Ordinance, 1979 (XXXI of 1979);

(xxix) 'security' means any stock, share, scrip, debenture, bond, preorganisa?tion 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 cancella?tion of a life‑insurance policy or annuity, according to stipulated terms and conditions, at any time before maturity benefits become available;

(xxvii) '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 Com?mittee' means a committee constituted under section 17;

(xxx) 'Valuation Date' means‑

(a) in respect of assets mentioned in the First Schedule, such date or dates as is or are specified in the third column of that Schedule;

(b) in respect of Ushr compulsorily realizable under this Ordinance, such date or dates as may be prescribed, or as may be notified by. the Adminis?trator‑General or by a Chief Administrator within his jurisdiction; and '

(c) in respect of items mentioned in the Second Schedule, such date or dates as is or are specified in the fourth column of that Schedule for the evaluation of the assets or the produce, in order to determine Zakat or Ushr liability, and any date prescribed or notified may also be a date which precedes the making of the rules or the publication of the notification, as the case may be ; and

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

(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 Sha'ban‑ul‑Moazzam;

Provided that the first Zakat year shall commence with the com?mencement of this Ordinance and end with the last day of Sha'ban‑ul-?Moazzam, 1401 A. H.

CHAPTER II‑ZAKAT

3--4

3. Charge and collection ofZakat.‑(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 (other than a person excluded from the definition of Sahib‑e‑Nisab) who owns or. possesses such assets on the valu ation Date;

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:

(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 on which Zakat is deductible at source ; and

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

(3) Where a person from whom Zakat has been deducted at source proves that‑

(a) he is not a Muslim, or

*(b)*be is not a citizen of Pakistan, or‑

(c) the amount deducted from him is more than what is due under this Ordinance, either.

(i) on account of error apparent from the record, or

(ii) on account of reduction provided for in subsection (2) not having been duly allowed to him, 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 administra tor‑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 certi ficate, 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 as Zakat by the Deducting Agency from any person shall be treated as payment of Zakat on behalf of such person.

4. Secrecy of information.‑Any informationfurnished 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.

ORDINANCE XVIII OF 1980

ZAKAT AND USHR ORDINANCE, 1980

CHAPTER III‑‑USHR

5 & 6

*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 pres cribed, from every land‑owner, grantee, allottee, lessee, lease‑holder 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 Valua tion 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 portion.

Explanation.‑In this section and section 6, 'land‑owner', 'grantee', allot tee' '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, allotee, lessee, lease‑holder or land holder shall be exempt from the compulsory levy of Ushr if‑

(a) be 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 Shariab 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 agencyor any other person as may be determined by the Chief Admi nistrator, 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 assessee's 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 subsection *(a),*or a Local Committee does not find the self‑assessment of the Ushr liability by an assessee acceptable under subsection (3), the Local Committee shall, after taking into considera tion the information furnished to it under subsection (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 subsection (2), make its own assessment of Ushr realizable on compulsory basis under this Ordinance, and notify the demand to the assessee in the prescribed form and manner.

(5) In the case of a lease in force immediately before the com mencement of this Ordinance, the liability of the lessee 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 ap portionment under subsection (5) may, within such time as may be pres cribed apply in the prescribed form and manner to the Local Committee, for a view of the assessment or, as the case may be, the apportionment.

(7) The Local Committee shall, within such time as may be pres cribed, 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 subsection (3), or, as the case may be, under subsection (4) or subsection;

(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, pro ceed to recover the amount so specified as if it were an arrear of land revenue.

CHAPTER IV‑ZAKAT FUNDS

7--11

7. Establishment of ZakatFunds.‑There shall be established the follow ing 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 ;

(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 ;

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

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

8: Utilization of ZakatFunds.‑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 assistance to deeni madaris or vocational educational institutions or public hospitals, clinics, dispensaries or health laboratories;

Provided that the lists of such individuals and institutions as are to be assisted directly and indirectly 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, are situated, as the case may be;

Provided further that the list of institutions through which assistance from a Provincial Zakat Fund is to be giving 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‑General shall be met by, the Federal Government, that on a Provincial Zakat Council and the administra tive organisation of a Chief Administrator 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 reduced 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 through out 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 and the institutions under clause *(a)*of section 8;

Provided that a Local Committee may or, if so required by the Pro vincial 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.‑(I) 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 persons who are chartered accountants within the meaning of the Chartered Accountants Ordinance, 1961 (X of 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 subsections (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 ;

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

(d) ‑aLocal 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 the 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‑

(a) a Chairman

*(b)*four persons to be nominated by the President of whom three shall be Ulema nominated in consultation with the Council of Islamic Ideology ;

(c) one person from. each Province, to be nominated by the President ;

(d) the Chief Administrators ;

*(e)*the Secretary to the Government of Pakistan in the Ministry of Finance ;

(f) the Secretary to the Government of Pakistan in the Ministry of Religious Affairs or, if there is no Secretary, the Additional Secretary in charge of the Ministry ; and

(g) the Administrator‑General, who shall also be the Secretary‑General of the Council:

(3) The Chairman of the Central Council shall be a person who is; or has been, a Judge or an ad hocJudge of the Supreme Court, to be nominated by the President in consultation with the Chief Justice of Pakistan.

(4) The Chairman and members of the Central Council, not being an ex officio member, shall hold office for a term of three years and shall be eligible for re‑appointment.

(5) The Chairman or a member, not being an ex officio member, may, by writing under his hand addressed to the President, resign his office;

Provided that he shall continue to hold office until his resignation is accepted by the President.

(6) Any vacancy in the office of Chairman or member, other than 'an ex officio member, shall be filled by the nomination, inaccordance with sub?section (2) or subsection (3), as the case may be, of a person qualified to hold the office.

(7) The Chairman or the member nominated under subsection (6) shall hold office for the unexpired term of his predecessor.

12 23

*13. Administrator‑General.‑.‑(1)*For carrying out the purposes of this Ordinance, there shall be appointed by the President an Administrator- General.

(2) The Administrator‑General shall have the status and grade of, and be ex officio, Secretary to the Government of Pakistan, and his tenure and other terms and conditions shall be such as may be determined by the Federal Government.

(3) The Administrator‑General shall be the Chief Executive in respect of matters relating to Zakat and Ushr and shall act under the general superin tendence and control of, and in accordance with the policy guidelines given by, the Central Council.

*14. Provincial Zakat Council.‑.(1)*In each Province, the Provincial Government shall, by notification in the official Gazette, establish a Provincial Zakat Council, to exercise general superintendence and control over matters relating to Zakat and Ushr, particularly the Zakat Funds in the Province and the maintenance of their accounts, in accordance with the policy guidelines given by the Central Council.

(2) The Provincial Council shall consist of‑

(a) a Chairman ;

(b) five persons, of whom three shall be Ulema, to be nominated by the Governor ;

(c) the Secretary to the Provincial Government in the Finance Depart ment ;

(d) the Secretary to the Provincial Government in the Local Government Department ;

(e) the Secretary to the Provincial Government in the Social Welfare Department ; and

(f) the Chief Administrator, who shall also be the Secretary of the Council.

(3) The Chairman of the Provincial Council shall be a person who is, or has been, a Judge of a High Court, to be nominated by the Governor in con. sultation with the Chief Justice of the High Court.

(4) The Chairman and members of the Provincial Council, not being an ex officiomember, shall hold office for a term of three years and shall be eligible for re‑appointment.

(5) The Chairman or a member, not being an ex officiomember, may, by writing under his hand addressed to the Governor, resign his office;

Provided that he shall continue to hold office until his resignation is accepted by the Governor.

(6) Any vacancy in the office of Chairman or member, other than an ex officiomember, shall be filled by the nomination, in accordance with sub section (2) or subsection (3), as the case may be, of a person qualified to hold the office.

(8) In the Islamabad Capital Territory, the functions of the Provincial Council shall be performed by the Central Council.

  1. *Chief Administrator.‑(1)*In each Province, for carrying out the purposes of this Ordinance, there shall be appointed by the Governor, in consultation with the Federal Government, a Chief Administrator.

(2) The Chief Administrator shall have the status and grade of, and be *ex officio,*Member, Board of Revenue and his tenure and other terms and conditions of service shall be such as may be determined by the Provincial Government.

(3) The Chief Administrator shall act under the general superintendence and control of the Provincial Council and perform, as the Chief Executive of the Council, such functions as are assigned to him by or under this Ordinance.

*16. District Zakat and Ushr Committee.‑(I)*In each district, a District Zakat and Ushr Committee shall be constituted by the Provincial Council concerned.

(2) The District Committee shall, subject to such guidelines as may be given by the Central Council or the Provincial Council,‑‑

*(a)*oversee, generally, the functioning of the Tehsil, Taluqa and Sub- divisional Committees and, more particularly, the assessment of Ushr and the collection of Zakat, Ushr and atiyyat and the disbursement and utilization of the moneys in the Local Zakat Funds, by the Local Committees in the district;

(b) for the purposes mentioned in clause *(a),*make plans for the district, in such form and manner as may be prescribed ;

(c) compile accounts of the Local Zakat Funds, for the district, in such form and manner as may be prescribed ;

*(d)*arrange, in the prescribed manner, audit of the Local Zakat Funds in the district ; and

(e) tender to the Provincial council advice on any matter specified by it.

(3) The District Committee shall consist of a Chairman, who shall be non‑official, the Deputy Commissioner of the district, one non‑official member from each tehsil, taluqa or sub‑division in the district and one member to be nominated by the District Council of the district from amongst its non‑official Muslim members;

Provided that, where the number of tehsils, taluqas or sub‑divisions in a district is less than five, the number of members other than the Chairman, the Deputy Commissioner and, the member nominated by the District Council, shall be raised to five;

Provided further that, in any district where there is a District Social Welfare Officer appointed by the Government, the District Committee may co‑opt him as a member of the Committee, ex officio.

(4) For the purposes of subsections (1), (2) and (3) of this section, and of section 17, the Islamabad Capital Territory shall be deemed to be a tehsil in. the district of Rawalpindi, and the functions of District Committee under this Ordinance shall be performed in that Territory by the District Committee constituted in the said district.

(5) The Chairman shall be nominated by the Provincial Council and the members shall be nominated by the Provincial Council in consultation with the Chairman.

Provided that the Chairman shall be an adult Muslim who ordinarily resides in the district and the member from a tehsil, taluqa or sub‑division shall be an adult Muslim who ordinarily resides in that tehsil, taluqa or sub‑division.

(6) The District Committee so constituted shall be duly notified by the Provincial Council concerned.

(7) The Chairman and members of the District Committee, not being an ex officiomember, shall hold office for a term of three years and shall be eligible for re‑appointment.

(8) The Chairman or a member, not being an ex officio member, may by writing under his hand addressed to the Provincial Council, resign his office;

Provided that he shall continue to hold office until his resignation is accepted by the Provincial Council.

(9) Any vacancy in the office of Chairman or member, other than an ex officiomember, shall be filled by the nomination, in accordance with sub section (5) of a person qualified to hold the office.

(10) The Chairman or member nominated under subsection (9) shall hold office for the unexpired term of his predecessor.

*17. Tehsil, Taluqa or Serb‑Divisional Zakat and Ushr Committee.‑(1)*There shall be constituted‑

*(a)*a Tehsil or Taluqa Zakat and Ushr Committee in each tehsil or taluqa:

Provided that, if the Provincial Council so directs in respect of any sub- tehsil, a Tehsil Zakat and Ushr Committee may be constituted in the sub- tehsil: and where a Committee is constituted in a sub‑tehsil, such Committee and such sub‑tehsil shall be deemed to be a Tehsil Zakat and Ushr Committee and a tehsil, respectively, for the purposes of his Ordinance ;

(b) a Sub‑Divisional Zakat and Ushr Committee in each sub‑division of the district of Lahore and the districts in the Karachi Division ; and

(c) an Islamabad Zakat and Ushr Committee in the Islamabad Capital Territory.

(2) The Tehsil Committee, Taluqa Committee or Sub‑Divisional Com mittee shall, subject to such guidelines as may be given by the Central Council, the Provincial Council or the District Committee‑

(a) oversee assessment of Ushr and collection of Zakat, Usbr and attiyat, and the disbursement and utilization of the moneys in the Local Zakat Funds, by the Local Committees in the tehsil, taluqa or sub‑division ;

(b) for the purposes mentioned in clause *(a)*make plans for the tehsil, taluqa or sub‑division, as the case may be, in such form and manner as may be prescribed;

(c) compile accounts of the Local Zakat Funds for the tehsil, taluqa or sub‑division, as the case may be, in such form and manner as maybe prescribed ; and

(d) tender to the District Committee advice on any matter connected with the collection, disbursement or utilization of Zakat or Ushr.

Explanation.‑Reference in this subsection and in the succeeding provi sions of this Ordinance to 'Tehsil Committee' shall be deemed to include a reference to the Islamabad Zakat and Ushr Committee.

(3) The Tehsil Committee, Taluqa Committee or Sub‑Divisional Com mittee shall consist of the Assistant Commissioner, six members to be elected. in the prescribed manner, by the Chairmen of the Local Committee of the tehsil, taluqa or sub‑division, from amongst themselves and one member to be nominated by the Tehsil or Taluqa Council of the tchsil or taluqa, as the case may be, from amongst its non‑official Muslim members;

Provided that, if there are more than two Tehsil Committees or Taluqa Committees within the jurisdiction of an Assistant Commissioner, he shall be a member of only such of the Committees as the Provincial Council may specify and the Provincial Council may nominate the Tehsildar or Mukhtiarkar of the tehsil or taluqa concerned, as the case may be to the member of any other of the said Tehsil Committees or Taluqa Committees.

(4) The members of the Committee shall elect one of their number to be the Chairman of Committee; and, if two or more persons secure an equal number of the votes, the result of election shall be determined by drawing lots.

(5) The Tehsil, Taluqa or Sub‑Divisional Committee so constituted shall be duly notified by the District Committee concerned.

(6) The Chairman and members of a Tehsil Committee, Taluqa Committee or Sub‑Divisional Committee, not being an ex officio member, shall hold office for a term of three years and shall be eligible for re‑election.

(7) The Chairman or a member, not being an ex officiomember, may, by writing under his hand addressed to the Tehsil Committee or, as the case may be, Taluqa Committee or Sub‑Divisional Committee, resign his office;

Provided that he shall continue to hold office until his resignation is accepted by the Tehsil Committee or, as the case may be, Taluqa Committee or Sub‑Divisional Committee.

(8) Any vacancy in the office of Chairman or member, other than an ex officio member, shall be filled by the election, in accordance with subsection (3), or, as the case may be, subsection (4), of a person qualified to hold the office.

(9) The Chairman or member elected under subsection (8) shall hold office for the unexpired term of his ,predecessor.

  1. Local Zakat and Ushr Committee.‑(1) ALocal Zakat and Ushr Committee shall be constituted for‑

(a) each revenue estate in settled rural area ;

*(b)*each deh or village in non settled rural area ; and

(c) each ward in urban area;

Provided that, if, in the opinion of the Provincial Council, the population of a revenue estate, deh or village is too large, or too small, to have one Local Zakat and Ushr Committee, such revenue estate, deh or village may, if too large, be divided into two or more localities, or, if too small, grouped with any other revenue estate, deh or village to form one locality.

Explanation.‑In thissubsection,‑

(a) 'urban area' means area within the local limits of a Municipal Corporation, Municipal Committee, Cantonment Board or Town Com mittee ;

(b)'rural area' means area other than urban area ;

(c) 'settled rural area' means rural area for which revenue settlement record exists ;

(d) 'non‑settled rural area' means rural area other than 'settled rural area' ; and

(e) `ward' means a distinct and compact locality the population of which does not exceed five thousand approximately.

(2) The Local Committee shall, subject to such guidelines as may be given by the Central Council, the Provincial Council, the District Committee or the Tehsil, Taluqa or Sub‑Divisional Committee,‑‑

(a) determine Ushr demand compulsorily realizable under this Ordinance and collect Zakat, Ushr and atiyyat; and disburse and utilize the moneys in the Local Zakat Fund ;

(b) for the purposes mentioned in clause (a), make plans for the locality ;

(c) prepare and maintain accounts of the Local Zakat Fund in such form and manner as may be prescribed ; and

(d) tender to the Tehsil, Taluqa or Sub‑Divisional Committee as the case may be, advice on any matter connected with the collection, disburse ment or utilization of Zakat or Ushr.

(3) The Local Committee shall consist of seven members selected, by the residents of the locality in the manner, specified in subsection (4) and one member to be nominated by the Union Council in whose jurisdiction the locality is situated, from amongst its non‑Official Muslim members, being a member who is a resident of the locality, or if there is no such member, a member who is a resident of a nearby locality.

(4) The District Committee shall constitute .a team of two or more persons to organise a public gathering of the adult Muslim residents of a locality and to call upon them to select, m the prescribed manner, seven adult Muslims residing in that locality who enjoy their trust to be the members of the Local Committee:

Provided that a person who is a member of a team constituted for the selection of members of a Local Committee shall not be eligible to be a member of such Local Committee, and a person who is a salaried employee of Government or of a local authority, or of a corporation set up, owned or controlled by Government, shall not be eligible to be a member of a Local Committee.

(5) Any person such as is referred to in the proviso to subsection (4) who may have been selected or elected as a member or Chairman of a Local Committee under the Zakat and Ushr (Organisation) Ordinance, 1979, shall cease to hold office on the commencement of this Ordi nance.

(6) If, at the time of selection, any adult Muslim resident of the locality present in the gathering raises objections with respect to another person so present that such other person‑

(a) is not a Muslim;

(b) is not an adult;

(c) is not a resident of the locality;

(d) is an undischarged insolvent ; or

(e) is of unsound mind ;

or, being a person proposed to be selected as a member of the Local Committee suffers from any of the said disqualifications, or has, during the period of three years preceding the date of selection, been ordered to execute a bond under section 108, 109 or 110 of the Code of Criminal Procedure, 1898 (Act V of 1898), or been convicted for an offence involving moral turpitude, or been declared a goonda under the law relating to the control of goondas, the team of persons organising the . gathering shall make a summary inquiry and give a decision on the objection raised ; and, in case the members of the team are equally divided in their opinion, the member of the team nominated by the District Committee to be its Convenor shall have a second vote.

(7) The members of a Local Committee shall elect one of their members, preferably a person who is literate, to be the Chairman of the Local Com mittee; and, if two or more persons secure an equal number of votes, the result of the election shall be determined by drawing lots.

(8) The Local Committee so constituted shall be duly notified by the District Committee concerned.

(9) Any adult Muslim resident of a locality who is aggrieved by the conduct or the result of the proceedings for the selection of the members, or the election of the Chairman, of the Local Committee concerned may prefer an appeal to the District Committee : '

Provided that the District Committee shall not grant any injunction or make any interim order, including a stay order, during the period an appeal is pending.

(10) The District Committee to which an appeal under subsection (9) is preferred shall decide the appeal within such time as may be prescribed; and the decision of the District Committee shall be final and shall not be called in question before any Court or other authority.

(11) The Chairman and members of the Local Committee shall hold office for a term of three years and shall be eligible for re‑election or re‑selection, as the case may be.

(12) The Chairman or a member may, by writing under his hand address ed to the Local Committee, resign ‑his office;

Provide that he shall continue to hold office until his resignation is accept ed by the Local Committee.

(13) Any vacancy in the office of Chairman or member shall be filled by the election or selection, as the case may be, of a person qualified to hold the office, in accordance with the provisions of subsection (4) or, as the case may be, subsection (7).

(14) The Chairman, or the member elected or selected, as the case may be, under subsection (13), shall hold office for the unexpired term of his predecessor.

*19. Vacancy, etc., not to invalidate acts or proceedings.‑(1)*Notwith standing anything contained in this Ordinance,‑

(a) a Council or Committee established or constituted thereunder for the first time shall be deemed to be duly established or constituted even if its strength is less than the strength specified in this Ordinance by not more than two;

(b) the Chairman of a Tehsil, Taluqa, Sub‑Divisional or Local Committee holding office immediately before the commencement of this Ordinance shall .be deemed to be duly elected as such Chairman; and

(c) the Islamabad Zakat and Ushr Committee and the Local Committees in the Islamabad Capital Territory constituted under the rules framed by the Provincial Council for the Province of the Punjab shall be deemed to be duly constituted.

(2) No act or proceeding of a Council or Committee established or constituted under this Ordinance shall be invalid by reason only of the exis tence of a vacancy in, or defect in the constitution of, such council or Committee.

*20. Person to preside at meetings in the absence of Chairman.‑(1)*If the office of Chairman of a Council or Committee established or constituted under this Ordinance is for the time being vacant, or the Chairman is absent from a meeting of the Council or Committee, the meetings thereof or, as the case may be, the meeting from which the Chairman is absent, shall be presided at‑

*(a)*in the case of the Central Council, by the Administrator‑General;

(b) in the case of a Provincial Council, by the Chief Administrator;

(c) in the case of a District Committee, by the Deputy Commissioner;

(d) in the case of a Tehsil, Taluqa or Sub‑Divisional Committee, by the ex officiomember, that is the Assistant Commissioner, the Tehsildar or the Mukhtiarkar, as the case may be; and

*(e)*in the case of a Local Committee, by the member elected by the members present.

*21. Power of supersession and removal.‑(1) If,*after such inquiry as may be necessary, the Provincial Council is of the opinion that a Committee constituted under this Ordinance‑

(a) is unable to discharge or persistently fails in discharging its duties, or *(b)*is unable to administer its affairs, or (c) acts in a manner contrary to public interest, or

(d) otherwise exceeds or abuses its powers.

the Provincial Council may, by a resolution, declare the Committee to be superseded for such period not exceeding one year as may be specified in the resolution;

Provided that the period of supersession may, if the Provincial Council considers it necessary to do so be extended beyond a period of one year,

(2) When a resolution is passed under subsection (1) in respect of a Committee,‑

(a) the persons holding office as Chairman and members of the Com mitteeto which the resolution relates, shall cease to hold office;

(b) allfunctions of the Committee shall, during the period of supersession, be performed by an Administrator, not being an official, appointed by the Provincial Council; and

(c) before the expiry of the period of supersession, elections shall be held and selection or nominations made in accordance with the provisions of this Ordinance to reconstitute the Committee.

(3) If, after such inquiry as may be necessary, the Provincial Council is of the opinion that the Chairman or a member of a Committee constituted under this Ordinance‑

*(a)*was at the time of his selection, election or nomination‑

(i) not a Muslim;

(ii) not an adult;

(iii) not a resident of the area within the jurisdiction of the Committee;

(iv) an undischarged insolvent; or

(v) not of sound mind;

*(b)*has been, during the period of three years preceding the date of his selection, election or nomination,

. (i) ordered to execute a bond under section 108, 109 or 110 of the Code of Criminal Procedure, 1898 (Act V of 1898); or

(ii) convicted for an offence involving moral turpitude; or

(iii) declared goonda under the law relating to the control of goondas;

(c) has, after his selection, election or nomination, incurred any of the disqualifications referred to in sub‑clause

(i), (iii), (iv) or (v) of clause (a), or sub‑clauses (i), (ii) or (iii) of clause (b);

*(b)*has, without reasonable excuse, absented himself from three conse cutive meetings of the Committee;

(c) has been guilty of abuse of power or of misconduct in the discharge of his duties as Chairman or member, or been responsible for any loss or misapplication of any money or property of the Committee, or

(f) has become physically disabled from performing functions asChair man or member,

The Provincial Council may, by a resolution, remove such Chairman or member from office.

Explanation.‑For the purposes of clause (e),`misconduct' means bribery, corruption, jobbery, favouritism, nepotism, wilful maladministration or wilful diversion of funds, and includes any attempt at, or abetment of, such misconduct.

(4) When the Chairman or member of a Committee is removed from, or other with ceases to hold office, the vacancy in the office off such Chairman or member shall be filled within such time as the Provincial Council may determine, by the election, selection or nomination, as the case may be, in accordance with the provisions of this Ordinance, of a person qualified to hold the office.

(5) The Chairman or member elected, selected or nominated under sub section (4) shall hold office for the unexpired term of his predecessor.

(6) The Provincial Council may delegate to a District Committee all or any of its powers under the preceding provisions of this section in respect of a Committee other than a District Committee.

(7) The Chairman or a member of a Committee superseded under sub section (1), or a Chairman or member removed from office under sub section (3), may, within such time, and in such form and manner, as may be prescribed, apply to the Provincial Council for a review of its decision; and the decision of the Provincial Council in such review, given after giving to the applicant an opportunity of being heard, shall be final and shall not be called in question before any Court or other authority.

Explanation.‑In this subsection, reference to 'Provincial Council' shall, where the powers of the Provincial Council are exercised by a District Com mittee in pursuance of subsection (6), be construed as a reference to District Committee.

  1. Officers and staff.‑The administrative organisation of the Adminis trator‑General shall be a Division or a part of a Division of the Federal Government and that of a Chief Administrator, a Department or a part of a Department of the Provincial Government and, except where otherwise provided in this Ordinance, to enable the Committees constituted under this Ordinance to perform their functions, such officers andstaff may be appointed, on such terms and conditions and by such authorities, as may be prescribed.

  2. Certain persons to be publicservants.‑Every person engaged in, or employed for, the administration of this Ordinance shall be deemed to be a public servant within the meaning of section 21 of the Pakistan Penal Code (Act XIV of 1860).

CHAPTERVI‑MISCELLANEOUS

24 30

  1. Exemption.‑The Federal Government may, in consultation with the Council of Islamic Ideology. exempt, by notification in the *official Gazette,*any specified class of cases or persons from payment of compulsory levy of Zakat or Ushr.

  2. Certain tax concessions.‑(1) Notwithstanding anything contained in any other law for the time being in force;‑

(a) in determining the tax liability of an assessee for an assessment year;

(i) under the Income‑tax Ordinance, 1979 (XXXI of 1979), his taxable income shall be reduced by the amount paid by him to a Zakat Fund, during the previous year relevant to that assessment year; and

(ii) under the Wealth‑tax Act, 1963 (XV of 1963), his assets in respect of which Zakat or contribution in lieu thereof, has been deducted at source during the year relevant to that assessment year shall be excluded from his taxable wealth; and

*(b)*land‑revenue and development cess shall not be levied on land on the produce of which Ushr or contribution in lieu thereof, has been charged r n compulsory basis.

(2) Nothing in the preceding subsection shall be deemed to affect the liability to pay income‑tax, wealth tax, land revenue or development cess in respect of any period preceding the enforcement of the relevant provisions of this Ordinance.

  1. Power to make rules.‑The Central Council may, by notification in the official Gazette, make rules for carrying out the purposes of this Ordinance;

Provided that, if the Central Council so directs, the Provincial Council may, with the approval of the Central Council, make rules in respect of administrative matters.

  1. Power to call for information and issuedirections.‑‑‑The Central Council, the Administrator‑General, a Provincial Council, a Chief Administra tor, a District Committee, a Tehsil Committee, a Taluqa Committee, a Sub- Divisional Committee, or a Local Committee, may, within its or his jurisdic tion, call for such information or record from, and issue such directions to, the concerned persons or agencies as may be necessary for the performance of its or his functions under this Ordinance.

  2. Indemnity and bar of jurisdiction.‑(1) Nosuit, prosecution or other legal proceeding shall lie against any person for anything in good faith done or intended to be done under this Ordinance or any rule.

(2) No Court shall call in question, or permit to be called in question, anything done or any action taken under this Ordinance or any rule.

(3) No Court shall grant any injunction or make any order, nor shall any Court entertain any proceedings, in relation to anything done or intended to be done or any action taken or intended to be taken under this Ordi nance or any rule.

29. Removal ofdifficulties.‑The Federal Government may make such provisions as may be necessary to remove any 'difficulty in carrying out the purposes of this Ordinance.

  1. Repeal.‑The Zakat and Ushr (Organisation) Ordinance, 1979 (XXIX of 1979), ishereby repealed.

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