Dr. Shabir Ally and Dr. Safiyyah Ally discuss the concept of Zakat, the obligatory charity in Islam. They highlight its distinction from general charity (Sadaqah) and its purpose in purifying wealth and aiding the needy. Zakat is typically 2.5% of one's net liquefiable assets, calculated based on the lunar calendar. Dr. Shabir discusses the historical context of Zakat and suggests the need for modern interpretations to accommodate contemporary financial systems and assets beyond gold and silver. He advocates for a progressive Zakat system that taxes the wealthy proportionately higher to alleviate the burden on the less affluent. Finally, he outlines the eight categories of Zakat recipients as delineated in the Quran, emphasizing the broad scope of legitimate uses for Zakat funds.

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