How are raw materials, goods in progress and finished goods valued for Zakat?

Question:

How are raw materials, inventory and finished goods valued for Zakat?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

 The Answer:

1. Raw material – for Zakat purposes, will consider its current value (usually difficult to determine, so may use cost price alternatively) 
2. Work in progress – for Zakat purposes, such goods will be valued at their current market value. 
3. Finished goods – for Zakat purposes, finished goods will be valued at the current retail price.

 

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam, 
Shariah Advisor
Amanah Finance Consultancy

 

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