Question

4.	a)	What is Zakah? Discuss the modern bases of Zakah?	3
	b)	How do zakah, tax, and sadaqah differ from one another?	3
	c)	Discuss the socio-economic impact of Zakah.	4

Answer 1

Zakat or zakah is type of charity to help vulnerable or poor through compulsory charity as some proportion of anyones wealth.its is known as self purification and worship . And now it fixes at 2.5% of anyones Wealth in islam and it's modern base of zakat.

Zakah is charity and different from tax as tax is compulsory giving of a certain amount to government in the form of income tax ,indirect tax, while sadaqh is similar to zakah in each dimension but like zakah it's not compulsory but voluntary.

Socio-economic impact of zakah : it is a way to distribution of wealth and making income inequality difference at lower and reduce government burden of expenditure , while it is good enough for doing social welfare and helping vulnerable section of society in different in different dimension.it reduce costs on society in the form of health ,education and basics need etc.