Is it obligatory to pay zakah on trade goods if two-thirds of the capital is a debt, and the trader owns only the remaining third?
Machine translationRead the Arabic original
The questioner: And I mean that two-thirds of the capital is a debt on me. Of course, Allah knows best. Is it permissible for me to pay zakah on the remaining third?
The Shaykh: I think you mean permissible, i.e., obligatory?!
The questioner: Obligatory, yes.
The Shaykh : Yes.
The questioner: Obligatory, yes.
The Shaykh: You must distinguish between permissible and obligatory.
The questioner: Yes, it is obligatory here.
The Shaykh: Okay, is your question about the cash and liquidity you have?
The questioner: I do not have any.
The Shaykh: Or about the merchandise? Listen, may Allah guide you, or about the merchandise you have?
The questioner: About the merchandise, yes.
The Shaykh: The merchandise, what is your merchandise?
The questioner: Fabrics.
The Shaykh: Fabrics?!
The questioner: Yes.
The Shaykh: The answer branches out based on which of the two opinions regarding trade goods is adopted: There are two schools of thought. One school says: that trade goods are stripped of their value and assessed each year—sugar, my brother, sugar, sugar, my brother—
The questioner: Come here.
The Shaykh: They are assessed at their actual value.
The questioner: Yes.
The Shaykh: Then two and a half percent is paid from that value. Do you understand this?
The questioner: Yes, I understand.
The Shaykh: This is the first school of thought.
The questioner: Yes.
The Shaykh: The second school of thought: that trade goods do not have this type of zakah, but rather one gives from the merchandise itself.
The questioner: The merchandise itself!
The Shaykh: One offers it to the poor and the needy without specifying a percentage, but rather with what one’s heart is pleased with. This is the answer to your question; there are two opinions.
The questioner: Yes.
The Shaykh: You understood the first opinion—what did you do, may Allah guide you, why, my brother, are you extending your hand—the second opinion: it is the stronger position in our view.
The questioner : If Allah wills.
The Shaykh: Is it clear?
The questioner: Yes, yes, may Allah reward you with good.
The Shaykh : And to you.
The Shaykh: I think you mean permissible, i.e., obligatory?!
The questioner: Obligatory, yes.
The Shaykh : Yes.
The questioner: Obligatory, yes.
The Shaykh: You must distinguish between permissible and obligatory.
The questioner: Yes, it is obligatory here.
The Shaykh: Okay, is your question about the cash and liquidity you have?
The questioner: I do not have any.
The Shaykh: Or about the merchandise? Listen, may Allah guide you, or about the merchandise you have?
The questioner: About the merchandise, yes.
The Shaykh: The merchandise, what is your merchandise?
The questioner: Fabrics.
The Shaykh: Fabrics?!
The questioner: Yes.
The Shaykh: The answer branches out based on which of the two opinions regarding trade goods is adopted: There are two schools of thought. One school says: that trade goods are stripped of their value and assessed each year—sugar, my brother, sugar, sugar, my brother—
The questioner: Come here.
The Shaykh: They are assessed at their actual value.
The questioner: Yes.
The Shaykh: Then two and a half percent is paid from that value. Do you understand this?
The questioner: Yes, I understand.
The Shaykh: This is the first school of thought.
The questioner: Yes.
The Shaykh: The second school of thought: that trade goods do not have this type of zakah, but rather one gives from the merchandise itself.
The questioner: The merchandise itself!
The Shaykh: One offers it to the poor and the needy without specifying a percentage, but rather with what one’s heart is pleased with. This is the answer to your question; there are two opinions.
The questioner: Yes.
The Shaykh: You understood the first opinion—what did you do, may Allah guide you, why, my brother, are you extending your hand—the second opinion: it is the stronger position in our view.
The questioner : If Allah wills.
The Shaykh: Is it clear?
The questioner: Yes, yes, may Allah reward you with good.
The Shaykh : And to you.
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.