Is Zakaat paid on the current value of stock or on the selling price of the stock?

Answer

Zakaat is payable on the current wholesale price of the stock, i.e. the price the retailer will pay today if he has to buy it, for this is the real value of the stock. The selling price is imaginary as long as the tangible money has not come into one's possession. Consider the following example: Zaid has R10,000 cash on hand. On what does he pay Zakaat? Every mufti will say that he pays Zakaat on R10,000. Now Zaid goes to the cash and carry and converts his R10,000 cash into R10,000 worth of groceries. He has not yet even loaded the goods on to his bakkie, then a mufti says that he must now pay Zakaat on R15,000 simply because Zaid says that he will be making a profit of R5,000 on the goods. Such a mufti should be stopped from issuing fatwas. He deems it necessary or compulsory to pay Zakaat on a figure which exists in only Zaid's mind.