Is there evidence for determining the rate of profit?

The questioner : Is there evidence for determining the rate of profit in trade, or does a person earn what he wishes and profit as much as he wishes?

The Shaykh : There is no evidence in the Shari'ah that mandates a specific rate, such as one-third, as mentioned in some books of Islamic jurisprudence by some later authors. Rather, this is an opinion and independent legal reasoning (ijtihad) with no evidence for it. However, it is of the utmost wisdom that the Shari'ah left the issue of determining profit open and did not restrict it, because that is in accordance with wisdom. A commodity that sells in large quantities cannot have the same profit margin as a commodity that sells in small quantities. Therefore, supply and demand are what determine the rate of profit. However, what a Muslim must adhere to is avoiding excessive uncertainty (gharar), concealment of defects (tadlis), and deceiving customers. For example, saying, "You did not pay the capital cost of this commodity," or "What you are paying, others have paid more than that." All of this is a means to extract greater profit and larger gains from this customer through such false claims. This is not permissible. But if you say a brief word: "The price of this commodity is such and such," and the profit may be double the capital, there is no harm. Even if you were greedy, you will regret it later, because the man will go elsewhere and buy this commodity for less than what you mentioned. At that time, your greed will return harm to yourself, and customers will stop coming to you after they realize that you are demanding exorbitant prices.
Yes.