Question:
I have learned that in business, I must pay zakaah on the market price of the goods in store and not the purchasing price. I would like to know if i have to calculate the current profit of each item in the store or can i just make an average percentage mark up for all the items as there are numerous different products to check. Also if after i calculate my zakaah if I don’t reach this figure i am ineligible to pay zakaah this year due to the high nisaab?
Answer:
In the Name of Allah, the Most Gracious, the Most Merciful.
Zakaah is due on one’s total savings and items of trade. Any fluctuation in the amount during the year will not be considered. 2.5% Zakaah will be paid on the total amount of savings/zakaatable assets (minus debts) on one’s annual Zakaah date.
One’s annual date for discharging Zakaah should be fixed (according to the lunar, Islamic calendar) and whatever is the total of one’s zakaatable assets on that date, your Zakaah will be paid on that amount.
All items of trade, goods in store, raw materials or goods in production are subject to Zakaah. The current market’s value of one’s goods is calculated on the day one is paying Zakaah. In determining the current market value, one may use the total cost price of one’s stock rather than the retail price (as the profit may vary). Cost price is the total expense incurred by a seller to produce or acquire a product (including materials, labor, and overhead), while selling price is the final amount a customer pays for it.
The current Nisaab in Trinidad and Tobago is $90, 215.00TTD (gold) (Calculated on 21 Jan 2026)
And Allah Ta’āla Knows Best
Mufti Arshad Ali
Darul Iftaa, Jaamia Madinatul Uloom (Trinidad)
