1. It reminds Muslims of the fact that whatever wealth they may possess is due to the blessings of Allah and as such it is to be spent according to His Commands.
2. Zakaah functions as a social security for all. Those who have enough money today pay for what they have. If they need money tomorrow they will get what is necessary to help them live decently.
3. The Zakaah payer pays his dues to Allah as an act of worship, a tof submission and an acknowledgment of gratitude. The receiver of Zakaah receives it as a grant from Allah out of His bounty, a favour for which he is thankful to Allah.
4. Economically, Zakaah is the best check against hoarding. Those who do not invest their wealth but prefer to save or hoard it would see their wealth dwindling year after year at the rate of the payable Zakaah. This helps increase production and stimulates supply because it is a redistribution of income that enhances the demand by putting more real purchasing power in the hands of poor.
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