Zakat on Wealth Revenue Up 23 Percent to MVR 114.9 Million in First 10 Months

The state received MVR 114.9 million as zakat on wealth in the first 10 months of this year, a 23 percent increase compared with the same period last year, according to statistics from the Maldives Inland Revenue Authority (MIRA). MIRA's published financial report for October shows that MVR 93.4 million was received as zakat on wealth in the same period last year, meaning revenue by the end of October this year has risen notably. In October alone, the state received MVR 5.2 million as zakat on wealth, a slight decrease from the MVR 5.5 million collected in October last year. The amount received so far this year has already exceeded the total collected last year. Last year's total stood at MVR 106.4 million, a figure surpassed during September of this year. To further strengthen the zakat system, the Maldives Zakat House aims to increase the amount of zakat on wealth received by 10 percent each year. By the third quarter of 2028, the authority estimates that at least 25 percent of total annual zakat received will come from companies and major businesses. The nisab for zakat on wealth is the minimum amount at which zakat becomes obligatory once that amount is reached in one's wealth. From 20 August this year, the nisab has been set at MVR 19,266.10. Zakat on wealth is a religious obligation upon every person who has completed one year after the nisab is reached, while arrangements have been made for zakat to be paid at any time of the year. In the Maldives, zakat on wealth has been collected by MIRA since 2016. In addition to MIRA's service centre, zakat is collected from branches in the atolls and collection centres, and MIRA says that on islands without such an office, zakat will also be collected through the island council office.