What is the ruling on paying Zakat to buy or secure a car used to help families with transportation?
Purchasing a car for a poor person from funds is a matter of scholarly disagreement. The majority of scholars prohibit it because the price of a car usually exceeds what would suffice a poor person for a year, and their need for a car can be met by renting. However, others view it as permissible.
Certain exceptions to this prohibition include: 1. If the poor person is a person with special needs and cannot use public transportation, and a suitable car cannot be rented for them. 2. If the car is a means of earning and livelihood for the poor person. 3. If the poor person bought the car on credit and is unable to repay the debt, provided that the car is suitable for their situation and not beyond their needs.
Regarding paying for car insurance from Zakat funds: If the insurance is compulsory for the poor person, it is permissible to pay them Zakat due to their poverty. Their spending of the money on insurance is not considered, as they are compelled to do so. However, if the insurance is optional (commercial insurance), it is not permissible to pay them Zakat, because it constitutes assisting in something forbidden.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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