Are Stock and Inventory Subject to Zakat?

Yes, stock and inventory are subject to Zakat. 

According to the principles of Zakat, stock, and inventory are indeed considered Zakatable assets.

• Stock and Inventory as Productive Wealth: Stock and inventory fall under the category of "Mal Nami" (productive wealth), which refers to assets that have the potential to generate profit.
• Shariah View on Trade Assets: In Islamic law, assets bought for resale or trade are considered Zakatable.
• Zakat Liability: Stock and inventory are treated like other business assets and are subject to Zakat once they are held for a full lunar (Hijri) year.
• Zakat Calculation: The Zakat due is calculated on the market value of the stock or inventory at the time of assessment.
• Zakat Rate: The Zakat rate is typically 2.5% of the total value of stock or inventory.

Thus, businesses should ensure that they account for Zakat on their stock and inventory as part of their financial planning. This not only ensures compliance with Islamic principles but also channels wealth towards those in need, supporting the broader welfare of society.

By fulfilling this obligation, you can extend your impact to institutions like Pakistan Sweet Home, where every donation for orphanage helps transform the lives of vulnerable children into stories of hope and resilience.

And Allah knows best!

Other Zakat Questions You May Have

• 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?
• What Types of Goods in Shops are Subject to Zakat?
• How Can a Restaurant Calculate Zakat on Its Stock?
• How is Zakat Determined on Property Development Assets?