ZakÄt, "that which purifies", is a form of obligatory alms-giving and religious tax in Islam. It is based on income and the value of all of one's possessions. It is customarily 2.5% of a Muslim's total income, savings and wealth above a minimum amount known as nisab, but Islamic scholars differ on how much nisab is and other aspects of zakat. The collected amount is paid first to zakat collectors, and then to poor Muslims, to new converts to Islam, to Islamic clergy, to those fighting for Islamic causes, and any other charitable cause. For example, a Muslim can still give zakat to non-Islamic charities, and it will still be considered as zakat.
Zakat is one of the Five Pillars of Islam, mandatory for all Muslims. Zakat is a charitable contribution, and is considered as a tax. The payment and disputes on zakat have played a major role in the history of Islam, such as the Ridda wars that fueled the conflict between the Sunni and Shia sects of Islam. --Wiki
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