How to Pay the Zakat on Trade Goods

The Shaykh : Regarding trade goods, the scholars have two opinions. The first is that the zakat obligatory on currency or currencies is obligatory on them. The second opinion is that this specific zakat is not obligatory on them, but rather a general, absolute zakat is required. In truth, the difference between the two opinions is very significant, whether from a legal or an economic perspective. From a legal perspective, those who hold the view I just mentioned obligate every merchant to count the goods he has, appraise them, and then pay out from their value as if it were currency, at two and a half percent. This is the opinion of the majority of scholars. The other school does not obligate this type of zakat because there is no text in the Book of Allah, nor in a hadith of the Messenger of Allah (peace and blessings be upon him), nor in any authentic report from the Salaf that every merchant must appraise his merchandise and pay two and a half percent. This is merely an opinion, an ijtihad, and a derivation based solely on analogy, and the analogy varies completely regarding the thing being analogized to. [Allahu Akbar, Allahu Akbar]. The other school says that the merchandise you have, you pay its zakat with what your soul is pleased to give, while considering the words of Allah (Mighty and Majestic) in two verses. One verse describes the nature of the human soul, and the other describes the duty of this human soul, which should be purified from the filth of stinginess. The other verse, the first verse, is the saying of the Blessed and Exalted: Meaning that the nature of souls is miserliness and stinginess. The Messenger of Allah (peace and blessings be upon him) confirmed this in the authentic hadith about him: So, to address this overwhelming stinginess, Allah the Exalted said in the second verse, which corresponds to the first verse, and I mean His saying, Blessed and Exalted is He: So, this wealthy owner of trade goods, there is nothing in this Shari'ah that obligates him to perform an annual appraisal. But in the Shari'ah, there is a command for him to purify his soul from the filth of stinginess and miserliness, and to purify it with charity, as Allah the Exalted said: This second type of zakat, which is not defined first by the passage of a lunar year, second by the appraisal of the merchandise, and third and finally by two and a half percent, has no existence in the Shari'ah at all. But take it as a general principle, as mentioned before, and pay out from this zakat that Allah has blessed you with, what purifies your soul from the affliction of miserliness and stinginess. I said this from the legal perspective. As for the economic perspective, the issue is very strange, such that some people who have not thought about the matter correctly from both the legal and economic perspectives, often when we explain the matter in this way, they say, "With this method, the rich will not have any liquidity; they will convert it into trade goods, and thus the poor will be deprived of the zakat on currency." I say this is a delusion. In fact, it is a delusion, and no one can raise this question, let alone argue for the answer, after it is explained to him that this is a pure delusion. If we asked any person, whether a merchant or not, rich or poor, "What do you think? Is it more beneficial for the poor, first, and for the rest of society, second, for the hoarded money in the box, where its owner pays two and a half percent on it every year, or if these thousands or millions were converted into merchandise that moves in the market and benefits both the rich and the poor?" Is there anyone among you who would say no, that the first option is more beneficial for the poor and the needy—that the money should remain hoarded and not be put into circulation with merchandise in a factory or anything that benefits the Ummah? I do not think anyone would say that this hoarded money, even if it is subject to zakat, is more beneficial than that money which was not hoarded but is... Yes, undoubtedly, this is more beneficial for the poor and the needy, first from a material perspective, and second from a... what shall I call it? A psychological perspective. Because the money that the poor person takes in the name of zakat, the saying of him (peace be upon him) applies to both the poor and the rich: The upper hand is the one that gives, and the lower hand is the one that takes. So, instead of the poor person taking it with a lower hand, he takes it with a higher right, which is through his effort, toil, and the sweat of his brow, as it is said. So, from where did I come and discuss this matter, whether from the legal, economic, or social perspective? You will find that there is no zakat on trade goods—the regulated zakat that we explained just now. This is all I have as an answer to this question.