Trade goods: Zakah is obligatory on them, and an explanation of some of their issues.
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The Shaykh : The sixth is trade goods. Trade goods are not restricted to a specific type of wealth; rather, they encompass all forms of wealth. This is because trade goods are evaluated by their value, not by their type, specific item, or kind. By what are they evaluated? By their value. For this reason, they are not restricted to a specific type of wealth. Trade goods may be real estate, such as land, houses, and shops; they may be cars, clothing, utensils, or bedding. The important point is that trade goods are not restricted to a specific type of wealth, because what is considered in them is their value. Therefore, a merchant is not concerned with having a specific item or another specific item; what matters to him is the item in which there is profit. Thus, his trade in one month may be in cars, in the second month in livestock, in the third month in fabrics, and in the fourth month in gold. Pay attention, my brother: are trade goods restricted to a specific type of wealth or not? No. So give us the criterion for them. What is the criterion for trade goods? Everything that is prepared for earning a livelihood through buying and selling. Whatever a person prepares for earning a livelihood through buying and selling is trade goods, and whatever is not prepared for that is not. Accordingly, let us take two examples in this topic to clarify the matter. A man bought land intending to build a house for residence, but he changed this intention and wanted to sell it, and he actually offered it for sale. Is there zakah on it? The lunar year has passed, and the second, third, and fourth years have passed. There is no zakah on this, because the man did not intend to earn a livelihood from it and did not hold it for earning a livelihood. He changed his initial intention to one where he says: "I am now pleased with it, and when Allah provides a means of sustenance through it, I will sell it." He owes no zakah on this.
Another man bought land intending to earn a livelihood from it. He intended to earn a livelihood, and it remained with him for five years, but he did not sell it. Does he owe zakah?
The students: Yes.
The Shaykh : Why? Because he intended it for trade from the beginning. Even if it is assumed that he originally intended it for building, but then changed from building to trade, such that if he were told, "Sell it," he would say, "No, I am waiting for a profit," this is considered for trade. As for the man who intended to sell because he changed from the intention of keeping it to the intention of selling and getting rid of it, he owes no zakah. Now, a group of people inherited land from a deceased person. This land remained with them for two or three years while they waited for a profit. Is it trade? The correct view is that it is trade, even though some scholars say it is not for trade because it was not originally for trade; they owned it by inheritance without the intention of trade. But the correct view is that as soon as they intended trade, it became trade for them. Others inherited land from a person, and it remained with them for years because they could not find a buyer, and they had prepared it for sale, but no one came to buy it. Is there zakah on it? No. Why? Because they did not intend trade and did not hold it for the sake of trade, but they simply could not find a buyer. As for the first group, they found a buyer, but they said, "We want a higher price." And so you will find that trade goods follow the intention. When a person intends to earn a livelihood and profit from them, they are trade. And if he does not intend to earn a livelihood or profit, they are not for trade. He says, "Three minutes remain of the time." Do not contradict.
Now, are these five types or six? These are six types if we count gold alone and silver alone. Perhaps we should limit ourselves and move on to zakat al-fitr and speak about it in general terms so that we do not waste our time.
Another man bought land intending to earn a livelihood from it. He intended to earn a livelihood, and it remained with him for five years, but he did not sell it. Does he owe zakah?
The students: Yes.
The Shaykh : Why? Because he intended it for trade from the beginning. Even if it is assumed that he originally intended it for building, but then changed from building to trade, such that if he were told, "Sell it," he would say, "No, I am waiting for a profit," this is considered for trade. As for the man who intended to sell because he changed from the intention of keeping it to the intention of selling and getting rid of it, he owes no zakah. Now, a group of people inherited land from a deceased person. This land remained with them for two or three years while they waited for a profit. Is it trade? The correct view is that it is trade, even though some scholars say it is not for trade because it was not originally for trade; they owned it by inheritance without the intention of trade. But the correct view is that as soon as they intended trade, it became trade for them. Others inherited land from a person, and it remained with them for years because they could not find a buyer, and they had prepared it for sale, but no one came to buy it. Is there zakah on it? No. Why? Because they did not intend trade and did not hold it for the sake of trade, but they simply could not find a buyer. As for the first group, they found a buyer, but they said, "We want a higher price." And so you will find that trade goods follow the intention. When a person intends to earn a livelihood and profit from them, they are trade. And if he does not intend to earn a livelihood or profit, they are not for trade. He says, "Three minutes remain of the time." Do not contradict.
Now, are these five types or six? These are six types if we count gold alone and silver alone. Perhaps we should limit ourselves and move on to zakat al-fitr and speak about it in general terms so that we do not waste our time.