Zakaat on gold
Question
I am a goldsmith. When calculating Zakaat of my stock, should I include the labour charge (i.e. making charges) as well. For example, the current market price of 22k gold is $57 per gram. If I add labour charges to that, it will come to $60 per gram. My average selling price is around $70. On which amount should I calculate my Zakaat:
a) cost price
b) cost with labour
c) selling price?
Answer
Zakaat is calculated on the market value of the goods and not the cost price. The market value is the price that the goods sell for in the market, which we generally refer to as the ‘selling price’. In conclusion, Zakaat is not calculated on the cost price, nor the cost price plus labour, but Zakaat is calculated on the selling price which is $70 in your query.
References (Arabic / Urdu sources)
الزكاة واجبة في عروض التجارة كائنة ما كانت إذا بلغت قيمتها نصابا من الورق والذهب كذا في الهداية. ويقوم بالمضروبة كذا في التبيين وتعتبر القيمة عند حولان الحول بعد أن تكون قيمتها في ابتداء الحول مائتي درهم من الدراهم —- (الفتاوي الهندية ص 179 ج1)
- Answered by
- Mufti Mohammed Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/zakaat-on-gold/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-22159
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