Nisab threshold for Zakat increases to MVR 9264

The minimum wealth threshold (Nisab) required for paying Zakat has increased this year, Ministry of Islamic Affairs announced.

As of yesterday, the Nisab for Zakat al-Mal, Zakat on property and cash has been set at MVR 9,264.15, up from MVR 7,140 when it was last fixed in January last year.

Zakat becomes obligatory for Muslims who hold wealth equal to or above the Nisab for a full lunar year. The standard rate is 2.5 percent of the total value of eligible assets.

The change reflects fluctuations in global gold and silver prices, which are used to determine Nisab. Silver is currently traded at MVR 15.57 per gram, while gold stands at MVR 1,601.52 per gram.

The ministry said that scholars favor using the value of silver to calculate Nisab in smaller countries like Maldives, as it benefits more people in need.

Property Zakat is collected by Maldives Inland Revenue Authority (MIRA).

Last year, over MVR 100 million was collected in Zakat al-Mal.