Property zakat threshold rises to MVR 19,527 amid silver price increase

The increase in global silver prices has led to a sharp rise in the property zakat threshold in the Maldives.

The Maldives Zakat House announced that the property zakat rate will be set at MVR 19,527.29 from Sunday. The previous threshold was MVR 11,191.95.

In the Maldives, the property zakat threshold is calculated based on the market price of silver. In recent years, the rate has generally ranged between MVR 5,000 and MVR 7,000.

According to the latest figures, the value of precious metals stands at MVR 2,149.39 per gram for gold and MVR 32.82 per gram for silver.

Zakat House Director General Izzuddin Adnan said this is the highest property zakat threshold recorded to date.

“This is the highest amount ever set. It came as a surprise,” he said.

Adnan said the prices of rice and silver are provided to the Zakat House by the Maldives Monetary Authority, adding that further verification was sought due to the scale of the increase.

He attributed the price changes to global factors, including conflicts, rising commodity prices, and reduced production of gold and silver. He noted that when the silver-based threshold previously reached MVR 11,000, it was considered high at the time.

“We thought that was the highest point, but the increase has continued,” he said.

The property zakat threshold represents the minimum value of assets required for zakat to become obligatory. Once an individual’s wealth reaches the nisab and a full Hijri year has passed, zakat is payable at a rate of 2.5 per cent.