Series of Answers by the Eminent Scholar Ata Bin Khalil Abu Al-Rashtah, Amir of Hizb ut-Tahrir, to the Questions of Visitors to his Facebook Page "Fiqhi"
Answer to Questions
Zakat on Honey and Other Trading Goods To: Amel Ht and Soufien HT
Questions:
Question from Amel Ht:
As-Salamu Alaykum Wa Rahmatullahi Wa Barakatuh, May Allah bless your efforts and benefit the Ummah through you, our honorable Amir. May He support you with victory and empowerment, and place this in the scale of your good deeds, InshaAllah. I have a question if you please. My question: Is there Zakat on honey? If so, what is the nisab?
Question from Soufien HT:
As-Salamu Alaykum, May Allah bless you and your deeds and place them in the scale of your good deeds. My question: I work in a point of sale for finished gold, i.e., selling jewelry. My question: How is Zakat calculated? Knowing that the gold is set with stones, is Zakat paid on the net weight of the gold without the stones, or are the gold and stones weighed together and Zakat paid on the total weight? And how is the Zakat for precious stones (diamonds, rubies, emeralds...) calculated? May Allah reward you with goodness.
The Answer:
Wa Alaykum As-Salam Wa Rahmatullahi Wa Barakatuh,
Your two questions fall under the same category; therefore, we will answer them together, by the permission of Allah:
Zakat is not obligatory except on the types of wealth that the Sharia has specified, namely: currency, trading goods, livestock, and grains. "Zakat is restricted to the wealth mentioned in the Sharia texts. Thus, Zakat is only taken from the things mentioned in the authentic texts, which are: camels, cattle, sheep, gold, silver, wheat, barley, dates, and raisins." We have explained the evidence for all of this in the explanation of Article 143 in the book The Introduction to the Constitution, Volume II; please refer to it for more detail.
Zakat is not obligatory on honey. We mentioned in the book The Introduction, Volume II, regarding the explanation of Article 143 concerning honey, the following: (As for what was narrated from Abu Sayyarah al-Mut'i who said:
قُلْتُ: يَا رَسُولَ اللهِ، إِنَّ لِي نَحْلاً، قَالَ: فَأَدِّ العُشُورَ، قَالَ: قُلْتُ يَا رَسُولَ اللهِ، احْمِ لِي جَبَلَهَا، قَالَ: فَحَمَى لِي جَبَلَهَا
"I said: 'O Messenger of Allah, I have bees.' He said: 'Then pay the tithes (ushur).' I said: 'O Messenger of Allah, protect its mountain for me.' So he protected its mountain for me."
And from Amr ibn Shu'ayb from his father from his grandfather, who said:
جَاءَ هِلالٌ، أَحَدُ بَنِي مُتْعَانَ، إِلَى رَسُولِ اللَّهِ ﷺ بِعُشُورِ نَحْلٍ لَهُ، وَكَانَ سَأَلَهُ أَنْ يَحْمِيَ لَهُ وَادِياً يُقَالُ لَهُ سَلَبَةُ، فَحَمَى لَهُ رَسُولُ اللَّهِ ﷺ ذَلِكَ الْوَادِي. فَلَمَّا وُلِّيَ عُمَرُ بْنُ الْخَطَّابِ رضي الله عنه كَتَبَ سُفْيَانُ بْنُ وَهْبٍ إِلَى عُمَرَ بْنُ الْخَطَّابِ يَسْأَلُهُ عَنْ ذَلِكَ فَكَتَبَ عُمَرُ: إِنْ أَدَّى إِلَيْكَ مَا كَانَ يُؤَدِّي إِلَى رَسُولِ اللَّهِ ﷺ مِنْ عُشُورِ نَحْلِهِ، فَاحْمِ لَهُ سَلَبَةَ، وَإِلاَّ فَإِنَّمَا هُوَ ذُبَابُ غَيْثٍ يَأْكُلُهُ مَنْ يَشَاءُ
"Hilal, one of the Banu Mut'an, came to the Messenger of Allah (saw) with the tithes of his bees, and he had asked him to protect a valley for him called Salabah. So the Messenger of Allah (saw) protected that valley for him. When Umar ibn al-Khattab (ra) became the Caliph, Sufyan ibn Wahb wrote to Umar ibn al-Khattab asking him about that. Umar wrote back: 'If he pays to you what he used to pay to the Messenger of Allah (saw) of the tithes of his bees, then protect Salabah for him; otherwise, they are just flies of the rain (wild bees), and anyone who wishes may eat from them.'"
This is not suitable to be used as evidence that there is Zakat on honey. The Hadith of Abu Sayyarah is munqati' (interrupted) because it is narrated by Sulayman ibn Musa from Abu Sayyarah; Al-Bukhari said: "Sulayman did not meet any of the Sahaba and there is nothing authentic regarding Zakat on honey." The Hadith of Amr ibn Shu'ayb was narrated by Abu Dawood and An-Nasa'i, and Ibn Abd al-Barr graded it as hasan in Al-Istidhkar. Nevertheless, it does not indicate the obligation of Zakat on honey, because what he paid was voluntary, and the Prophet protected the valley for them in exchange for what was taken. This is evidenced by what Umar did, as he understood the reason ('illah) and commanded the same. This is supported by what was narrated from Sa'd bin Abi Dhubab:
أَنَّ النَّبِيَّ ﷺ اسْتَعْمَلَهُ عَلَى قَوْمِهِ وَأَنَّهُ قَالَ لَهُمْ: أَدُّوُا العُشْرَ فِي الْعَسَلِ
"That the Prophet (saw) appointed him over his people and that he said to them: 'Pay the one-tenth on honey.'" (Reported by Al-Bayhaqi and Ibn Abi Shaybah, and graded weak by Al-Bukhari, Al-Azdi, and others).
Despite this, Ash-Shafi'i said: "And Sa'd bin Abi Dhubab narrates what indicates that:
أَنَّ النَّبِيَّ ﷺ لَمْ يَأْمُرْهُ فِيهِ بِشَيْءٍ، وَأَنَّهُ شَيْءٌ رَآهُ هُوَ فَتَطَوَّعَ لَهُ بِهِ قَوْمُهُ
'The Prophet (saw) did not command him anything regarding it, rather it was something he saw fit and his people volunteered it to him.'"
All of this indicates that there is no Zakat on honey; even the Hadiths they used as evidence show that there is no obligatory Zakat on it.) End quote.
Similarly, Zakat is not obligatory on precious stones because the Sharia did not include them among the types of wealth subject to Zakat. Therefore, gold mixed with precious stones has its Zakat calculated after deducting the weight of the precious stones; they are not included in the Zakat. Zakat is paid on the remaining gold after deducting what is mixed with it, according to the relevant Sharia rules.
However, if honey and precious stones are intended for trade, then Zakat is due on them. We have explained the details of this in the book Funds in the Khilafah State and in an answer to a question issued on 25 Jumada al-Akhirah 1437 AH, corresponding to 03/04/2016 CE, which states:
[Urud at-tijarah (trading goods) refers to anything other than currency that is used for trading—buying and selling with the intention of making a profit—including foodstuffs, clothing, furniture, manufactured goods, animals, minerals, land, buildings, and other things that are bought and sold.
Zakat is obligatory on goods used for trade. From Samurah bin Jundub, who said:
أَمَّا بَعْدُ، فَإِنَّ رَسُولَ اللَّهِ ﷺ كَانَ يَأْمُرُنَا أَنْ نُخْرِجَ الصَّدَقَةَ مِنَ الَّذِي نَعُدُّ لِلْبَيْعِ
"Furthermore, the Messenger of Allah (saw) used to command us to pay the Sadaqah (Zakat) from that which we prepared for sale." (Reported by Abu Dawood).
And from Abu Dharr, from the Prophet (saw), who said:
وَفِي البَزِّ صَدَقَتُهُ
"And on al-bazz (trading garments) is its Sadaqah." (Reported by Ad-Daraqutni and Al-Bayhaqi).
Al-Bazz refers to the clothes and fabrics used for trade. Abu Ubayd narrated from Abu 'Amrah bin Hamas from his father, who said: "Umar ibn al-Khattab passed by me and said: 'O Hamas, pay the Zakat on your wealth.' I said: 'I have no wealth except for quivers and leather.' He said: 'Estimate their value, then pay their Zakat.'" And from Abdurrahman bin Abd al-Qari, who said: "I was in charge of the public treasury (Bayt al-Mal) during the time of Umar ibn al-Khattab. When the distribution came, he would collect the wealth of the merchants, then calculate it—both what was present and what was absent—then take the Zakat from the present wealth for both the present and the absent." (Reported by Abu Ubayd).
- Ahmad narrated in his Musnad from Malik bin Aws bin al-Hadathan al-Nasri, from Abu Dharr, who said: I heard the Messenger of Allah (saw) say:
فِي الْإِبِلِ صَدَقَتُهَا، وَفِي الْغَنَمِ صَدَقَتُهَا، وَفِي الْبَقَرِ صَدَقَتُهَا، وَفِي الْبَزِّ صَدَقَتُهُ
"On camels is their Sadaqah, on sheep is their Sadaqah, on cattle is their Sadaqah, and on al-bazz is its Sadaqah."
Al-Bazz means garments prepared for trade.
- An-Nawawi said in Al-Majmu' Sharh al-Muhadhdhab:
(Zakat is obligatory on trading goods due to what Abu Dharr (ra) narrated, that the Prophet (saw) said:
فِي الْإِبِلِ صَدَقَتُهَا وَفِي الْبَقَرِ صَدَقَتُهَا وَفِي الْبَزِّ صَدَقَتُهُ
And because trade is intended for the growth of wealth, Zakat is attached to it like pastured livestock... His saying:
وَفِي الْبَزِّ صَدَقَتُهُ
It is with a fatha on the ba and with the letter zay; this is how all the narrators reported it, and Ad-Daraqutni and Al-Bayhaqi explicitly mentioned the zay. The old and new texts of Ash-Shafi'i (ra) are consistent regarding the obligation of Zakat on trade... and the well-known position of the companions (of the Shafi'i school) is the agreement that the school of Ash-Shafi'i (ra) holds it to be obligatory...)
- Ibn Qudamah said in Al-Mughni:
(Zakat is obligatory on the value of trading goods according to the majority of scholars. Ibn al-Mundhir said: "The people of knowledge have reached a consensus that there is Zakat on goods intended for trade when a year (hawl) has passed over them..." Our evidence is what Abu Dawood narrated with his chain from Samurah bin Jundub, who said: "The Messenger of Allah (saw) used to command us to take out the Zakat from what we prepared for sale." And Ad-Daraqutni narrated from Abu Dharr: I heard the Messenger of Allah (saw) say: "On camels is their Sadaqah, on sheep is their Sadaqah, and on al-bazz is its Sadaqah." He said it with the letter zay. There is no disagreement that it is not obligatory on the items themselves, and it is established that it is obligatory on their value. From Abu 'Amr bin Hamas, from his father, who said: Umar commanded me, saying: "Pay the Zakat on your wealth." I said: "I have no wealth except quivers and leather." He said: "Value them then pay their Zakat." Reported by Imam Ahmad and Abu Ubayd.) End quote.
- Al-Bayhaqi narrated in Al-Sunan al-Kubra:
(Ahmad bin Muhammad bin al-Harith al-Faqih informed us, Ali bin Umar al-Hafiz reported to us, Abu Bakr al-Naysaburi narrated to us, Ahmad bin Mansur narrated to us, Abu 'Asim narrated to us, from Musa bin Ubaydah, Imran bin Abi Anas narrated to me, from Malik bin Aws bin al-Hadathan who said: While I was sitting with Uthman, Abu Dharr came to him and mentioned the Hadith. He said: They said: "O Abu Dharr, narrate to us from the Messenger of Allah (saw)." He said: I heard the Messenger of Allah (saw) say: "On camels is their Sadaqah, on sheep is their Sadaqah, on cattle is their Sadaqah, and on al-bazz is its Sadaqah." He said it with the letter zay.) End quote.
Zakat is obligatory on trading goods if their value reaches the nisab of gold or the nisab of silver, and a full lunar year (hawl) has passed.
If a merchant starts his trade with wealth less than the nisab, and at the end of the year the wealth reaches the nisab, there is no Zakat due upon him because the nisab has not been held for a full year. Zakat will be due on this nisab after a full year has passed over it.
If a merchant starts his trade with wealth exceeding the nisab, for example, starting with one thousand dinars, and by the end of the year his trade grew and profited, reaching a value of three thousand dinars, he must pay Zakat on the three thousand dinars, not just the one thousand he started with. This is because the growth follows the principal, and the hawl (year) of the profit is the same as the hawl of the principal. This is like the offspring of goats or sheep; they are calculated with their mothers and Zakat is paid on them because their hawl is that of their mothers. Likewise, the profit on wealth has the same hawl as the principal wealth from which it was gained. When the year concludes, the merchant evaluates his trading goods—whether they are items that would normally have Zakat due on them specifically, like camels, cattle, and sheep, or items that do not, such as clothing, manufactured goods, land, or buildings. He evaluates them all together in gold or silver and pays one-fortieth (2.5%) if they reach the nisab of gold or silver. The Zakat is paid in the currency in circulation. It is also permissible to pay the Zakat from the goods themselves if that is easier for him. For instance, if someone trades in sheep, cattle, or clothes, and the value of Zakat due is equivalent to a sheep, a cow, or a garment, he may pay in cash or provide the sheep, cow, or garment; whichever he chooses is acceptable.
Trading goods that are subject to Zakat in their own right, such as camels, cattle, and sheep, are taxed as trading goods, not as livestock, because the intention behind owning them is trade, not possession (qinyah).
By understanding this Sharia reality, the answer to your question is as follows:
a- Trading goods are evaluated at their market price, i.e., their selling price when the Zakat becomes due, because this is the real value of these goods. They are not evaluated at the purchase price, as it may be less or more than the market price that expresses the true value of the commodity. Therefore, the market price is what is relied upon.
b- If the seller is a wholesaler, he evaluates his goods at the wholesale price. If he sells at retail, he evaluates them at the retail price... If he mixes between wholesale and retail, he takes the ratio between the two sales and applies it. If he sells half the goods at wholesale and the other half at retail, he estimates half the goods at wholesale and the other half at retail... and so on, because this is the closest expression to the actual value of the goods.
c- The goods are evaluated at the market price in the country where they are located, not in the merchant's country, because their market price in the country where they are located is closer to their true value.
d- All goods are evaluated when Zakat is to be paid, whether they are stagnant (slow-moving) or not, because goods are in reality wealth... Stagnant goods are evaluated at their market value when the Zakat becomes due, and in this case, their value will naturally be less than their value before they became stagnant. This is done every year because they are currency in the form of goods, so Zakat is due on them just as it is due on currency every year.
e- What is paid as Zakat for trading goods should be in cash, but it is permissible to be from the goods themselves. If the amount due is 2000, and the price of one item is 500, the Zakat payer can give 4 items as Zakat for his trading goods. This can be a suitable solution for stagnant goods so that the wealth paid as Zakat is not from cash but from the goods, thus taking the interest of the Zakat payer into account.
This is what I find most correct in this matter, and Allah is All-Knowing and All-Wise.] End quote.
I have repeated the entire answer to clarify how to act when paying Zakat on honey and precious stones intended for trade, as well as all other trading goods...
Your brother, Ata Bin Khalil Abu Al-Rashtah
27 Rabi’ al-Awwal 1442 AH 13/11/2020 CE
Link to the answer from the Amir’s Facebook page: https://web.facebook.com/HT.AtaabuAlrashtah/photos/a.1705088409737176/2791835167729156/
Link to the answer from the Amir’s website: http://archive.hizb-ut-tahrir.info/arabic/index.php/HTAmeer/QAsingle/4079