Difference Between Zakat and Tax

Zakat vs Tax

Zakat is related to religious and tax is related to government. In no way Zakat and tax can go together; they are different in many respects. While zakat has a religious sanctity, tax is not like that.

Tax is collected from all citizens of a country. The government collects tax for the overall development of the country, On the other hand, Zakat is only imposed on Muslims.

Zakat is fixed as per the Holy Quran and cannot be changed by any person. Zakat is a permanent system whereas tax is not. Zakat is calculated at 2.5 percent of the annual income of a person or a family. On the contrary, the government has certain rules and regulations for fixing tax. While there is no change in the percentage of Zakat given, the government has the right to make changes in the tax from time to time.

There are also differences in the sources between Zakat and Tax. While Zakat has fixed sources, the sources of tax vary according to the needs. Tax comes as direct and indirect tax. Zakath is given out of the surplus wealth or earnings. There are certain conditions for giving Zakath and is only distributed to certain people. Zakath should be given to poor people, to free captives, to those who are in debt, those employed to collect funds, for Allaah’s Cause and for wayfarer. Zakath is also given once in every year.

While Zakat is not that compulsory, tax is compulsory. Every citizen irrespective of being rich or poor has to pay tax. Unlike Zakat, the government forces tax on the citizens.

Zakat is a means of salvation for the persons who pay it.

Summary
While zakat has a religious sanctity, tax is not like that.
Tax is collected from all citizens of a country. On the other hand, Zakat is only imposed on Muslims.
The government collects tax for the overall development of the country. Zakath should be given to poor people, to free captives, to those who are in debt, those employed to collect funds, for Allaah’s Cause and for wayfarer.
Zakat is a permanent system whereas tax is not.
While Zakat is not that compulsory, tax is compulsory. Every citizen irrespective of being rich or poor has to pay tax.
While Zakat has fixed sources, the sources of tax vary according to the needs.

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