LZ&UC have been established on each at a revenue state (village) in rural areas and one each in a ward in urban areas. It is headed by a Chairman; Its composition is different from that of the District / Constituency Committees. A Local Zakat Committee consists of 7 members. According to the rule the seventh member for an urban area must be a lady

The members elected as Chairman should of course be literate, offer ere of prayer give times a day regularly and observe the fasts throughout the month of Ramadan. The tenure in office of the Chairman as well as the member is three years. All of them being eligible to be re selected as a member or re-selected as a chairman, as a case may be. The other terms of their service are the same as are in the case of other higher level Zakat and Ushr Committees.

LZ&UC play an important role in Zakat System by collecting the data and preparing the lists of Mustahqeen in its area and opening their PLS accounts for receiving Zakat installments.

The Local Committee shall, subject to such guidelines as may be given by the Zakat Council, District Committee or the Constituency Committee perform its function in locality, Prepares List of Beneficeries, Determinination of Istehqaq.