Fatwa ID: 08444

 

 

 

Answered by: Alimah Aisha Qureshi

 

 

Question:

 

When calculating Zakat on merchandise, does one use the cost price or the market value?

 

 

In the name of Allah, the Most Gracious, the Most Merciful

 

Answer:

 

 

In the Hanafi school of thought, Zakat on merchandise (goods or stock held for sale) should be paid, owners must understand how they should calculate the Zakat they owe on their merchandise. This is a crucial matter because Zakat is a financial obligation, and its calculation impacts the owner’s wealth and the amount due.

 

 

According to Hanafi Fiqh, the Zakat which is due on the goods is calculated based on the market value of the goods at the time of Zakat.

 

 

The market value is the price that the goods could get if sold in the current market, rather than the actual cost price.

 

 

 

 

References:

وله ولاية منعها الي القيمة فتعتبر يوم المنع كما في منع الوديعة وولد المغصوب،

 

Fatawa Hindiya vol 2 pg 226 publisher Dar Al Kotob Al- ilmiya Beirut

 

 

 

 

 

Only Allah knows best.

Written by Alimah Aisha Qureshi

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham