An estimated amount of Tk 300 billion can be collected as Zakat in the country every year, according to a keynote paper presented at a seminar in the city on Saturday.
It also said proper management of the fund collected as Zakat, and its institutionalisation can help alleviate poverty in the country.
Dr Muhammad Abdul Mazid, former chairman of the National Board of Revenue (NBR), presented the paper at the seminar on 'Role of Zakat and tax in reducing income inequality' during a daylong Zakat fair.
The Centre for Zakat Management (CZM), a non-profit organisation, arranged the 7th edition of the fair at the auditorium of Krishibid Institution Bangladesh (KIB).
Planning minister MA Mannan attended the seminar as the chief guest with former adviser to the caretaker government Dr A B Mirza Azizul Islam in the chair.
Former chief election commissioner Justice Mohammad Abdur Rouf, chairman of the CZM and group director of Rahimafrooz (Bangladesh) Limited Niaz Rahim, and Vice Chairman of Islamic Banks Consultative Forum AKM Nurul Fazal Bulbul also spoke on the occasion.
In the keynote paper, Mr Abdul Mazid said there is no denying that Zakat along with tax can help reduce income inequality in the society.
"Alleviation of poverty and reduction of wealth inequality are two of the key mandates for achieving Sustainable Development Goals (SDGs)," he said, adding that Zakat can play a key role in this regard.
The former bureaucrat also said the economic growth of a country is not purposeful unless it is inclusive.
Mentioning the role of Zakat in the history of Islam, he said proper management of the fund can substantially reduce poverty, which usually results from corruption, lack of good governance, illiteracy and mismanagement and poor skills.
"Zakat needs to be distributed in such a way that a person can significantly improve his lifestyle through employment and skills development," he said. Mr Mannan said though the majority of Bangladesh's people are Muslims, many don't know the precise meaning of Zakat.
"Around 20-21 per cent people of Bangladesh are living below the poverty line while the country is also witnessing a sharp growth rate in the number of rich people," he said.
Zakat can play a vital role in reducing wealth gap in any society, the minister said.
Mirza Azizul Islam underscored the need for institutionalisation of Zakat funds. "The economic activities done through institutionalisation of Zakat funds are likely to be more sustainable," he said.
He also praised the CZM for its role in creating awareness about Zakat.
The Financial Express was a media partner of the event.
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