By paying Zakat a person actually clean and purify his wealth. By the payment of Zakat the circulation of wealth increases which the healthy growth of the community. when the circulation of wealth stops and remains in few hand the poverty increases very much. we can take the example of India where only 36 families are having $191 billions which is equal to 1/4 of Indian GDP and we can see the result how much poverty Indian common man has. if every person gives Zakat to poors Poverty will vanish away from the earth.
Benefits of Zakat
now i will discuss some benefits of Zakat which we can have by paying Zakat.
1 Enhances Volume of Production
when Zakat is collected and distributed among the poor they spend it on various consumer goods which increase the demand of various products of industries which increases production of goods.
2 Discourages Hoarding
Zakat discourages hoarding because it is levied on hoarded wealth.
3 raises Savings
Zakat is paid out of the accumulated wealth. the wealth owner must in saving ratio, in order to prevent the level of his wealth from decreasing.
4 Zakat increase level of income
Zakat increase level of income due to circulation of wealth in the economy.
5 Raises investment
Zakat Raises investment due to increase in consumption and production of goods.
6 reduces chances of recession
Zakat increases circulation of wealth which reduces chances of recession.
7 Reduces inequality of Wealth
Zakat is distributed among the poors from rich people so it reduces inequality of wealth.
8 Raises Income level
Distribution of Zakat acts as an unemployment tool. Zakat is given to poor it increases his income level.
9 Raises Demand for necessities
Zakat Raises demand for necessities because poor buys things with Zakat of his needs.
10 Raises Standard of Living
Zakat Raises standard of living of a poor person.
11 Reduces unemployment
Zakat reduces unemployment and helps poors to do business with amount of Zakat.
12 End Poverty
Zakat ends poverty as Zakat is given to poors.
13 Redistribution of National Income.
14 Reduces Crimes.
Zakat has many other benefits as well. it is indeed the best way of ending poverty from earth May Allah Swt help us in giving Zakat to deserving people.