Zakat and how it can transform Pakistan into a first world country

[PeterboroughAli]

Intangible assets

• As you claimed intangible assets (in your example knowledge ) or intellectual knowledge is not Zakat
• Voluntarily spreading your good idea is also not worth much from income preceptive

However, in business Patents/ Intellectual Property, and Copyright is worth money to business.
However, no zakat is due on Idea as it has no monetary value.

Of course, when a Man buys a Copyright or Patent for which increases their personal Income.


There is no culture of Patent and Intellectual property in Pakistan. As there is no R&D



If you invented Medicine for Covid, you would have Copyright over that invention and this would be your exclusive right to profit from the research , when you will make income from this idea that that income will come under the Taxation system (Zakat etc)
Taxation System (Or Zakat , a subset) will not cure Pakistan's Problem

Reason is provided here


------------------------------------- below item was already shared

• Pakistan has yearly yeild of 350 Billion Dollar as a Nation
• We use 5% of our fresh water which falls into Sea
• 70% of Food products are grown in Pakistan

We beg for 1 Billion why?

Mismanagement - everyone want their "Cut" and piece of pie

The only cure to mismanagement , get off the mindset of I want my piece of Pie and Perks


0.5% Military 30-40% Budget share each year
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5% Elite Choor Group : 80,000 USD - 250,000 USD salaries and Perks

• Politician (PML,PPP,JUI) corrupt
• Executive Gov roles

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35% City Dwellers Average salaries $350/month (salary workers/taxed)
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50% Villagers Average salaries $2-5/ Day (living day to day)
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6% Untaxed Large Agro Land Owners Salary 350,000 USD-1,000,000 USD


A country with wealth distribution as above of course it will be out of fund
Because the tax payer's salary is low

Yes it will, it will create a knowledge economy

 

[AZADPAKISTAN2009]

My statement is no economy will flourish. no system will succeed while crooks administer funds.

• However R&D based society is good in a funtional country , which we are not
• I agree that more R&D should be done in general which leads to inventions

As noble as the Tax system (subset Zakat) is , a corrupt man with greed will fail the system

 

[PeterboroughAli]

My statement is no economy will flourish. no system will succeed while crooks administer funds.

• However R&D based society is good in a funtional country , which we are not
• I agree that more R&D should be done in general which leads to inventions

As noble as the Tax system (subset Zakat) is , a corrupt man with greed will fail the system

I already talked about this the rise of South Korea was filled with corruption they still rose

 

[Ra's al Ghul]

Zakat is a beautiful thing but I think you're being naive.

To say zakat will make Pakistan an intangible asset economy is like saying zakat will solve corruption. People are not so straight forward. It'll be the same problems under a new tax regime.

The only way to grow r&d is cutting edge education and investment in manufacturing sector

Asalam o alikum,

you were asking about my details.
so Brother will you plz email me.

Kamrankhan.info7@gmail.com

thanks.

 

[PeterboroughAli]

How Zakat can increase the knowledge economy

Zakat is payable on tangible assets only and not on intangible assets. Leading to the increase of intangible assets within a economy and leading to a growth of the knowledge economy. A growth of intangible assets is a growth of the knowledge economy. Zakat paid right will create more jobs within knowledge sectors such as technology, education, engineering, marketing etc.

I figured out Zakat is not payable on intangible assets by asking the question someone with a average house, average car and average savings, designs the next big technology product in his garage and tweets it and gets a lot of brand appeal. Just as he does this he dies. Did this person die as a rich/wealthy person or of average wealth. I asked this question and the answer comes back as average wealth meaning even though with high levels of intangible assets this person was said to have died with average wealth. Meaning intangible assets are not wealth. So no Zakat is due on them.

Another way of showing no Zakat is due on intangible assets is intangible assets is mainly made up of intellectual property which is just knowledge. I have not come across anywhere stating there is Zakat due on knowledge. Prophets who were the most knowledgeable did not pay Zakat on their knowledge. So again there is no Zakat due on intangible assets.

Zakat on tangible assets and no Zakat on intangible assets will create a economy were intangible assets grow and the knowledge economy increases.

 

[PeterboroughAli]

With no Zakat taxes on knowledge economy or negligible amounts they will become financially successful causing especially younger generations to want to be part of it further growing it.

 

[Thevilone]

With no Zakat taxes on knowledge economy or negligible amounts they will become financially successful causing especially younger generations to want to be part of it further growing it.

Zakat is a social welfare tax.

Every modern state has taxes for social welfare. The only difference is the middle-man(Govt.) is replaced by pee to peer taxation and renumeration.
It doesnt transofmr economy in any way at all.

 

[fna]

those who do not meet the work quota do not get to eat.

Arbeit macht frei​

outside where they are housed. I wont mind it in this case.

 

[ProudThamizhan]

aren't tangible assets all the ultimate output of R&D / knowledge that you call intangible?
If people only produce intangible assets won't you end up with billions of research papers but no bread?

 

[Clutch]

From my research Zakat is payable only on tangible assets and not payable on intangible assets. Zakat is payable on wealth, and I worked out intangible assets is not wealth. Intangible assets being intellectual property, brand value, how to design and manufacture a good or service.


So I asked two questions to figure out if intangible assets was wealth. First figuring out if intangible assets is not wealth then figuring out tangible assets is wealth.


Intangible assets is not wealth

If there was someone who had average house average car and savings, who made the design for the latest tech product in there garage, and tweeted it and got lots of likes, people ready to buy. Just as they did this he completed the design and sent out tweet he died same day , would you say this person died wealthy or rich or average? The answer came back as average wealth even though there intangible assets were worth a lot. Which means intangible asset is not wealth.


Tangible assets is wealth

If there was someone who had a average house a average car and savings. However they accumulated lots of factories, trucks and equipment, in their lifetime. Just as this person did this they died, would you say this person died wealthy or rich or average? The answer came back as wealthy. So same scenario but with the accumulation of tangible assets people say the person is wealthy.


From my research Zakat is payable only tangible assets and not payable on intangible assets. Zakat is payable on wealth, and I worked out intangible assets is not wealth. Intangible assets being intellectual property, brand value, how to design and manufacture a good or service.



So I asked two questions to figure out if intangible assets was wealth. First figuring out intangible assets is not wealth then figuring out tangible assets is wealth.



Intangible assets is not wealth



If there was someone who had average house average car and savings, who made the design for the latest tech product in there garage, and tweeted it and got lots of likes, people ready to buy. Just as they did this he completed the design and sent out tweet he died same day , would you say this person died wealthy or rich or average? The answer came back as average wealth even though there intangible assets were worth a lot. Which means intangible asset is not wealth.



Tangible assets is wealth



If there was someone who had a average house a average car and savings. However they accumulated lots of factories, trucks and equipment, in their lifetime. Just as this person did this they died, would you say this person died wealthy or rich or average? The answer came back as wealthy. So same scenario but with the accumulation of tangible assets people say the person is wealthy.



What happens when we live in a Zakat system with correctly no Zakat payable on intangible assets. Investors crave intangible assets as no Zakat is due on them. The economy starts to produce more intangible assets through R&D(research and development).



Now it has been said to make a successful economy you need to improve the level of R&D that is conducted within it. With successful large economies still investing large amounts in R&D.

So will this make Pakistan into a first world country?

Zakat doesn't compensate for corruption. Period. God's law.

 

[PeterboroughAli]

A recent study by McKinsey noted that companies in the top 10 percent for growth in gross value added (GVA), a measure of economic productivity, invest over two and a half times more in intangible assets than the bottom 50 percent of companies. The study also found that companies, sectors, and economies that invest the most in intangible assets – intellectual property (IP), research, technology, software, human capital, digital, managerial, and organizational capabilities – grow faster than those that are not.

 

[PeterboroughAli]

Investing In Knowledge Economy Will Help Make 21st Century Another ‘American Century’

As the so-called knowledge economy has become globalized, firms with production facilities that remain in the U.S. often find themselves losing out to foreign competitors from Beijing to Bengaluru.

www.forbes.com

In this article it talks about how beneficial intangible assets are and how America should create taxes in a way to make them grow

 

[PeterboroughAli]

Pakistan needs sustainable growth which Zakat will provide it through no Zakat payable on intangible assets. McKinsey article states through recent studies economies are more likely to grow faster which invest in intangible assets than those that did not.

Pakistan needs to move away from import led growth and move towards sustainable growth through investment in intangible assets.

 

[fisher1]

The rich don’t pay zakat unfortunately

They just hoard and hoard money

 

[PeterboroughAli]

The rich don’t pay zakat unfortunately

They just hoard and hoard money

You can take there assets of them if they don’t pay Zakat on them