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.

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)

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:

Mufti Mohammed Desai

Date: 06 Rajab 1444 / 28 January 2022