(Series of Answers by the Eminent Scholar Ata Bin Khalil Abu Al-Rashtah, Ameer of Hizb ut-Tahrir, to Questions from Visitors to His Facebook Page)
Answer to Question
To: Lut Abu Sunainah
Question:
Our honorable Sheikh, greetings from Allah, blessed.
Peace be upon you and the mercy of Allah and His blessings.
My question concerns the nisab of Zakat on trade goods: It is stated in the book Al-Amwal (The Funds) on page 195 that the nisab for Zakat is 200 silver dirhams, i.e., 595 grams of silver, or 20 gold dinars, i.e., 85 grams. Today, which of the two nisabs do we rely on in our calculation for trade goods, knowing that there are large differences between the price of gold and silver? One gold dinar is worth approximately hundreds of silver dirhams. If we calculated five gold dinars, their price would exceed the silver nisab. So, which of the two nisabs do we rely on today? May Allah bless you and benefit us with your knowledge.
Answer:
Walaikum Assalam Wa Rahmatullahi Wa Barakatuh,
First: For the people of gold, the nisab is "85 grams of gold," and for the people of silver, it is "200 silver dirhams." As for representative paper currency, it follows what it represents: "If the representative is gold, it is considered by the nisab of gold, and if the representative is silver, it is considered by the nisab of silver."
As for paper that derives its value by the force of law and is not representative paper—neither of gold nor silver—such as the current fiat currency, what I find more correct is that it be valued by the lower of the two nisabs, i.e., silver. If the value of the paper currency reaches "200" silver dirhams, i.e., the value of 595 grams of silver (approximately 20 ounces of silver, and I think an ounce of silver is worth about 30 dollars), this means that if what a Muslim possesses reaches about 600 dollars (calculated precisely), and he has no debt... then he is among the people of Zakat. If a houl (lunar year) passes over the nisab without it decreasing, then he must pay Zakat.
I say the lower of the two nisabs because if it reaches the minimum nisab, he has become among the people of Zakat; therefore, it is not permissible to bypass it waiting for the higher nisab. Rather, he must record this date on which he became among the people of Zakat, and then after the passage of a houl, he pays Zakat if the nisab has not decreased. This is what I prefer, and Allah is the All-Knowing, Most Wise.
Your brother, Ata Bin Khalil Abu Al-Rashtah
Link to the answer from the Ameer's Facebook page
Link to the answer from the Ameer’s website
Link to the answer from the Ameer's Google Plus page