Are Industrial Tools and Equipment Subject to Zakat?

No, industrial tools and equipment are not subject to Zakat.

Zakat is a mandatory charitable contribution that applies to specific types of wealth, such as:

• Cash, gold, and silver
• Trade goods (items bought and sold for profit)
• Agricultural produce

However, when it comes to industrial tools and equipment, their Zakat liability depends on their usage:

• Production machinery and equipment
• These are essential for manufacturing and business operations.
• They are not considered trade goods, as they are not bought or sold for profit.
• Therefore, they are not subject to Zakat.
• Spare parts and industrial accessories
• Used for maintenance and repair of machinery.
• Not intended for direct sale or profit.
• These also do not qualify for Zakat.
• Raw materials and finished goods
• If intended for sale, they are subject to Zakat as trade goods.
• Their value must be included in Zakat calculations.

The principle behind this ruling is that Zakat applies to wealth that actively generates income or circulates in trade. Machinery and its components, however, are fixed assets that support business operations rather than serving as tradable commodities.

And Allah knows best!

Other Zakat Questions You May Have

• Are Trade Receivables Considered Zakatable Assets?
• How Does a Business Asset Qualify for Zakat Purposes?
• Is Zakat Applicable to Stock and Inventory?
• Is an Asset Purchased for Personal Use Liable for Zakat?
• How to Calculate Zakat on Grocery Store Inventory?
• Can Benefits from a Zakatable Asset Change Zakat Payments?