Is tawarruq a type of usurious transaction?
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Question:
One of the students says: Some scholars have held that the issue of tawarruq, in which a person buys a commodity for a deferred price and then sells it to another person for a lower immediate price, is a usurious sale. So upon whom does the sin of usury fall in this sale?
Answer:
This is not usury; the correct view is that it is not usury. The issue of tawarruq is not usury, and the statement of those who say it is usury is an error. If a person buys a commodity on credit and then sells it for cash to someone other than the one from whom he bought it, for his need, there is no harm. This is the correct view. Allah (Glorified and Exalted is He) says: [Surat al-Baqarah: 275]. The original ruling is that sale is lawful.
One of the students says: Some scholars have held that the issue of tawarruq, in which a person buys a commodity for a deferred price and then sells it to another person for a lower immediate price, is a usurious sale. So upon whom does the sin of usury fall in this sale?
Answer:
This is not usury; the correct view is that it is not usury. The issue of tawarruq is not usury, and the statement of those who say it is usury is an error. If a person buys a commodity on credit and then sells it for cash to someone other than the one from whom he bought it, for his need, there is no harm. This is the correct view. Allah (Glorified and Exalted is He) says:
But Allah has permitted trade and has forbidden interest
وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.