Q: A person purchased land abroad with the intention to sell and make profit 8 years ago. The price of this land has risen, thought is stagnant at present. However due to a decline in foreign investors in the country the market for foreign companies purchasing land from individuals is at a standstill. Therefore being unable to sell this land for the foreseeable future would one be required to pay zakaat on this? If so, at what price? i.e market or purchase price?
A: If one had purchased the land for resale purposes and one did not change his intention, then one will have to pay zakaat on the land. The zakaat will be payable on the market value of the land.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)