Home | Fatwa | Business | Discharging Zakaat with purchased stock

Discharging Zakaat with purchased stock

Q. I have closed down my garment and fabric business and am still in possession of stock from same business. Can a fellow muslim who has Zakaat to discharge, purchase some of my stock at CURRENT market prices for distribution of his obligation.

If permissable, can I deliver ‘purchased stock’ on his behalf to bona fide

organizations/institutions and give him proof of delivery as his receipt.

JAZAKALLAH

(There may be grammatical and spelling errors in the above question. Questions are published as received)

A. In the case were the person is purchasing stock to discharge his Zakaat, it is emphasized that the stock be sold to him at current market value to minimize the possibility of abuse. His Zakaat will be discharged according to the price he paid for the stock. For example, his Zakaat for this year amounted to R100 000 and he purchased stock from you for the same amount, it will be considered that he has discharged R100 000 in Zakaat once the stock is distributed.

Once he purchases the stock, the stock belongs to him and he may discharge his Zakaat with it. If he tasks you with the delivery of the goods to an institution, he is actually appointing you as his Wakeel (proxy) to discharge his Zakaat with his own goods for him. Such arrangement will be permissible.

And Allah Knows Best

Fatwa Department
Jamiatul Ulama (KZN)

Council of Muslim Theologians

Check Also

Stokvel Fund

  Nasihah (Advice): A true believer is one who can be trusted with the lives …

Paying Zakat on previously lost jewellery

  Nasihah (Advice): The real loss of family and property   Sayyiduna Ibn Umar Radhiyallahu …