1. BUSINESS OR CASH
The calculation of the Niswab of this category is based on the value of silver.
The Niswab for silver is 200 Dirhams which is worth 595 grams of silver.
Niswab is the minimum amount of property liable to payment of Zakat.
One gram of silver is worth 1.12 United States dollars. Taking into account the dollar fluctuation, and for purposes of payment of Zakat the exchange rate of one (1) US dollar has been fixed at Uganda shillings 2.200/=
Basing on the above figures the Sharia committee has fixed the Niswab for a Ugandan Muslim at 1,470,000/=Ugandan shillings.
If a Muslim has saved the above amount of money (1,470,000/=) in a year, If he/she has invested in a business for a year, he should pay 1/4 (a quarter) of 1/10 (a tenth) = 1/40 (2.5%).
For example, if Muslim at the end of the year has invested in a business or saved 2,000,000/=. The amount due for Zakat is calculated as follows:
2,000,000 = 200.000
200,000 = 50.000
So for the savings of 2,000,000/= a Muslim pays 50.000/= (fifty thousand) Another alternative and a simpler calculation is:
2,000,000 x 2.5 = 50.000 (fifty thousand)
If Shs. 1,470,000/= is the Niswab, the starting point of payment Zakah, any additional amount attracts Zakat that is calculated as shown in the above example.