JEDDAH, 22 February — The Shoura Council is currently discussing new proposals to collect zakah on land used for commercial purposes. Currently zakah on such property is left to the seller's discretion, according to a member of the Council.
He added that the proposed regulation aims clearly to define land used for commercial purposes as well as the mechanism for collecting its zakah which will be similar to the system for collecting company zakah.
The current regulations did not make it binding on the land dealer to pay zakah on commercial land, the council member said.
All other commercial activities are subject to Zakah and Income Department Regulations. The department estimates the payable amount of zakah, on the basis of a statement of commercial dealings filed by the businessman for the year.
Muhammad ibn Jubair, chairman of the Saudi Shoura Council, stressed on Tuesday the importance of broadening the base of zakah collection measures to bring commercial land under its purview.
