CLARIFICATION—LEVY OF SERVICE CHARGES ON ZAKAT ACCOUNTS MAINTAINED FOR DISBURSEMENT OF ZAKAT FUNDS

Please refer to BPD Circular No. 23 dated July 4, 2003.

It has been observed that the banks are recovering service charges on account of services connected with the collection and disbursement of Zakat, which is not permissible in terms of Section 8 (c ))(iii) para-2, Zakat & Ushur Ordinance, 1980.

2. Banks are, therefore, advised to ensure that there is no violation of the provisions of Zakat & Ushur Ordinance or any other law and ensure compliance with the above instructions in letter and spirit.

3. All other instructions on the subject shall, however, remain unchanged.

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