I want to know about zakat on stock materials which is lying at our warehouse
Mu' meneen Brothers
and Sisters,
As Salaam Aleikum wa
Rahmatullahi wa Barakatuh. (May Allah's Peace, Mercy and Blessings be
upon all of you)
One of our
brothers/sisters has asked this question:
Question:Assalamu Alaikum,
I want to know about zakat on stock materials which is lying at our warehouse.
At what price we should give Zakat for out stock materials, At our buying price
from factory/market or at our selling price in market?
i.e. we did buy materials from factory/market at Rupees
20.00/kg on 14th Shabaan. Costing or other charges for deliver materials at our
warehouse is Rupees 2.00/kg. It total come to us at Rupees 22.00/kg. Our Zakat
date is 1st Ramdaan and materials is still lying in our warehouse on 1st
Ramdaan. We sell this materials in market at Rupees 25/kg and our today (29th
Shabaan) selling price is also 24/kg in market due to huge stock but we still
not sold this materials (stock materials) and not got any profit and face any
loss yet.
So, at what price (20/kg, 22/kg 24/kg or 25/kg) we should give Zakat?
I am waiting for your reply.
KHUDA HAFIZ
(There may be some
grammatical and spelling errors in the above statement. The forum does not
change anything from questions, comments and statements received from our readers
for circulation in confidentiality.)
Answer:
Zakah Value
In the name of Allah, We praise
Him, seek His help and ask for His forgiveness. Whoever Allah guides none
can misguide, and whoever He allows to fall astray, none can guide them aright.
We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam,
no dai, nobody!) worthy of
worship but Allah Alone, and we bear witness that Muhammad (saws) is His
slave-servant and the seal of His Messengers.
The majority of the scholars
and jurists in Islam are of the opinion that if the product or commodity is one
of normal trade where the price of the product does not increase/decrease
exponentially, then the zakah may be paid on the cost value of the items of
trade.
But if the product or commodity
is such where the price fluctuates or increases/decreases exponentially, like shares,
investments in land, or antique pieces, etc., where when bought the cost might
have been only a $100.00 but the market value today might be $100,000.00, then
it would be closest to piety to fulfill one’s zakah on the market value of the
holdings.
Your Question: So, at what price (20/kg, 22/kg 24/kg or 25/kg) we
should give Zakat?
Since the products of your inventory seem to be goods of normal trade,
if you paid the zakah on the cost value of your merchandise (ie 20/kg or 22/kg
depending of how you determine the cost) it would suffice. And Allah Alone Knows Best.
Whatever written of Truth and
benefit is only due to Allah’s Assistance and Guidance, and whatever of error
is of me alone. Allah Alone Knows Best
and He is the Only Source of Strength.
Your brother and well wisher in Islam,
Burhan