Title: AssalamuAlaikum, I am a businessman and pay zakaat at the beginning of Ramadhan. I total all cash, jewellery and debtors and subtract the creditors to get my zakatable income. With regards to the business stock, I have heard two opinions. Many have mentioned that you have to calculate it at the cost price. Many have also mentioned that it has to be calculated at market price. I will appreciate it if you can clarify this matter for me. I will appreciate a detail response including the hanafi school's verdict and whether there is are differences of opinions. JazakAllah and awaiting your reply. Wasalaam

Question: AssalamuAlaikum, I am a businessman and pay zakaat at the beginning of Ramadhan. I total all cash, jewellery and debtors and subtract the creditors to get my zakatable income. With regards to the business stock, I have heard two opinions. Many have mentioned that you have to calculate it at the cost price. Many have also mentioned that it has to be calculated at market price. I will appreciate it if you can clarify this matter for me. I will appreciate a detail response including the hanafi school's verdict and whether there is are differences of opinions. JazakAllah and awaiting your reply. Wasalaam

Answer ID: 15891Posted on: Aug 31, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1538/1229/L=1430)

The Zakah will be paid as per the existent market value of the business stock, the original cost will not be considered.