a whole.

Zakāt is a state institution

It should be borne in mind that zakāt is not simply obligatory charity. It is a state institution or, where there is no Muslim state, a national institution. The individual is not at liberty to calculate and spend his zakāt as he likes. It must be collected by the state on a national basis, and spent by the state or community. Where the Holy Qur’ān describes the main heads of the expenditure of zakāt, it mentions an item of expenditure on officials appointed to collect and distribute the same, which shows clearly that, by the institution of zakāt, it contemplated either a department of the state or at least a public fund managed entirely by a public body. The donor is not required to give a certain portion of his zakāt to deserving persons, but to contribute all of it to a fund which must be used for the uplift of the community. It was in this sense that the Holy Prophet understood it, and when he assumed control of the government, he made zakāt a state institution, appointing officials to collect it and directing his governors to do the same in distant provinces.17 Abū Bakr, the first caliph, followed in the footsteps of the Holy Prophet when he declared war against some of the tribes which had refused to send their zakāt to the state treasury, adding: “Zakāt is the right (of the state or community) in the wealth (acquired by an individual), and by Allāh, if they refuse to make over even one lamb which they used to make over to the Holy Prophet, I will fight against them” (Bu.14:1).

Property on which zakāt is payable

Though injunctions relating to zakāt are met with in very early revelations, the details were given only after Islām was established at Madīnah. Silver and gold are the two commodities which man has always loved to hoard, and beside this these are the two precious metals which are the basis of the currencies of the world. These two, therefore find special mention as being articles on which zakāt must be paid. Ornaments made of silver or gold were treated as silver or gold. And cash, whether in the form of coins or bank deposits, would follow the same rule. Precious stones were excepted from zakāt,