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Please advise about the Al-Mabroor cattle feeding scheme

Answered according to Hanafi Fiqh by Askimam.org

Please advise about the Al-Mabroor cattle feeding scheme. Is Zakaat payable on the full investment amount? Or just the profits? What about the market value of the cattle at the time of paying Zakaat?

Answer

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

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

Generally, in the Al-Mabroor Cattle Investment Scheme, one invests in the scheme with the intention of purchasing cattle for resale and capital gain. As such the cattle will be treated as merchandise/stock in trade. Hence, the laws of zakāt on merchandise will be applicable and not the laws pertaining to zakāt on animals.[1]

 

Zakāt is obligatory on the current market value on the day of calculating one’s zakāt.  For example, a person invested R5 million in the Al Mabroor Cattle Scheme.  On the day of calculating one’s zakāt, the market value of one’s investment is R 5,500,000.  If one’s liabilities do not exceed one’s assets, then such a person will be obligated to pay zakāt of 2.5% of R 5,500,000 plus the value of other zakātable assets.

 

You may contact Al-Mabroor directly regarding the evaluation of your investment assets for Zakaat computation. The Darul Iftaa only advises Al-Mabroor Investments in an external capacity and is not responsible for management.

 

And Allah Ta’āla Knows Best

 

Ismail Desai,

Darul Iftaa

 

Checked and Approved,

Mufti Ebrahim Desai.

 

 

 

 

 


احسن الفتاوى ج 4 ص 287 أيج أيم سعيد

أحسن الفتاوى ج 4 ص 284 أيج أيم سعيد

يقوِّم التاجر العروض أو البضائع التجارية في آخر كل عام بحسب سعرها في وقت إخراج الزكاة، لا بحسب سعر شرائها، ويخرج الزكاة المطلوبة (الفقه الإسلامي وأدلته ج 3 ص 1871 دار الفكر)

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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