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Showing posts from October 17, 2014

Evernote:Poverty line or threshold and Poor according to World Bank and Islam

The above screenshot is from Wikipedia.
It clearly states that the international poverty line is $1.25/day.Just look at the following calculation.
(A)1 day = $1.25 = Rs 76.85 ( exchange $1=Rs 61.48 as on 17Oct2014)
(B) 1 month = $1.25×30 = $ 37.50 = Rs 2305.50
(C) 1 Year = $37.50 × 12 = $450 = Rs 27666
Therefore anyone earning equal or less than the above is poor according to the modern world.
The above screenshot is also from Wikipedia.
In Islam the concept of Zakat revolves around Nisab. A muslims worth must exceed the nisab value to be required to pay zakat.If less than nisab value a muslim is exempted from paying zakat (Islamic Tax on wealth for redistribution and benefits to poor).In other words that person is identified as poor or below poverty line and therefore exempted tax.
So to find out poverty line according to Islam we first have to calculate the Nisab value.There are 2 ways of calculating it.One is the Gold Dinar standard and the other is Silver Dirham.
Let us use the gold sta…