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Zakat Taxes Including Custom Duty
AOA dear
Hope and pray you are fine
I have little confusion about zakat .
Case-1
Let’s suppose i buy a bottle of water for $2 in China and import this bottle of water back to Pakistan and pay $3 of custom duty and taxes to Government. The total price of water bottle is now $5.
My question is- can I accommodate this extra $3 duty and taxes into my Zakat ?
Case-2
Suppose I buy a car worth $20 in Islamabad Pakistan. The same car cost around $10 in foreign countries but this $10 difference is custom duties and taxes being paid to Government .
my question is can i accommodate this extra $10 into my Zakat too ?
Jazakallah
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7 Replies
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Zakat Taxes Including Custom Duty
updated 3 weeks, 5 days ago
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7
Replies
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Yes, taxes paid to the government can be adjusted against Zakat obligation. Government taxes include all forms of actual taxes levied by the government including but not limited to, income tax, sales tax, property tax etc.
However, Custom Duty does not appear to be a form of tax in the same sense as are other taxes on a person’s income (whether direct or indirect). A professional may be consulted on the status of Custom Duty.
Please refer to the video below from 28:16 to 29:20
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Thanks brother
But still i am not clear.
My questions remain the same.
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You can accommodate the taxes paid to the government in your Zakat obligation.
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Thank you brother
Let me make it more precise with another example.
The price of Suzuki alto car is around 30lacs in Islamabad and there are also the same non-custom paid or unregistered suzuki alto car available for 15 lacs in some areas of kpk ( only allowed to run in those limited regions). The difference of these prices is the legal custom duty and some taxes being paid to Government.
Now question is- Can i accommodate this difference of 15lacs into my Zakat ?
Thanks in advance
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You can accommodate the amount of taxes paid to the government in this 15 lakh differential, but not the custom duty.
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Thanks brother.
But why not custom duty?
What is the difference between?
Custom duty is also a type of tax.
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Custom duty is not a tax on your income/wealth.
Income tax is a direct tax on your income.
Sales tax is an indirect tax on your income (via consumption).
Property tax is also direct tax on your assets (wealth).
Custom duty has no relation with a person’s income. It is a duty charged by the govt. on import of certain items.
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