The Peninsula 

Doha, May 7: Qatar is likely to make payment of the yearly Zakat levy mandatory for shareholding companies in the country.

In an exclusive interview, Jassim Mohammed Al Kubaisi, the Director of the state-run Zakat Fund, said payment of the annual levy was not compulsory up to now for companies and individuals. But at a meeting of GCC officials responsible for collecting and managing Zakat, held in Doha in November 2007, it was agreed to make payment of the annual levy compulsory for companies. "We agreed to give recommendations to our respective governments," he added. Saudi Arabia has already made it obligatory for companies to pay Zakat and UAE will make it obligatory by 2009.

A local Arabic daily reported that only some 12 percent of the QR1.2 bn supposed to be collected from shareholding companies listed at the Doha Security Market was realised in the fiscal year 2007-08. Al Kubaissi added that since there was no law forcing companies to pay their dues, the role of the Zakat Fund was restricted to reminding the companies of the levies due per share, after receiving a copy of their annual financial results.

"The shareholders and not the companies are paying the dues after the amount due per share is announced," he explained. In this regard, Al Kubaisi pointed out a new initiative taken by the Qatar Flour Mills, which has decided to pay the levy on behalf of the shareholders. "I urge all companies to take a similar step", he added.

Zakat Fund revenues for the fiscal year 2007-08 have reached QR100m. In compliance with the concept of Zakat in Islam, which is meant to ensure equitable distribution of wealth, it is donated to needy people. The major activities carried out by Zakat Fund comprise seasonal and continuing projects. The Fund has allocated a budget of QR14m to support 10,000 needy students, both citizens and residents, in the current academic year and almost QR10m have being disbursed up to now. The seasonal projects are mainly carried out during the holy month of Ramadan and include mass Iftar, Zakat Al Fitr and Eid clothing, among others.

Asked whether the controls imposed on international money remittance after the terrorist acts of September 11 had restricted the activities of Zakat Fund, he said it was not affected much as the fund had limited international activities. "Our international activities represent only three percent of the total revenue and the required cash is transferred via official channels and in a transparent manner to recognized partners (charity organisations) abroad which implement the project," he clarified.