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,
Amanah Finance Consultancy
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