Zakat of Agricultural Products

Source: https://www.islamweb.net/emainpage/PrintFatwa.php?lang=E&Id=29066&lang=E&Id=29066

Question
I own two acres of land, one of which is my property and the other is rented out. What is the due zakat on each of them, given that I am growing banana trees and that costs a lot of money to cultivate?

Answer
All perfect praise be to Allah, The Lord of the worlds. I testify that there is none worthy of worship except Allah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

Scholars have differed with regards to the due zakat on agricultural products. Imam Abu Hanifah, may Allah have mercy upon him, believed that zakat is obligatory on agricultural products, regardless of their amount. He believed that zakat should be paid on everything that comes out of the earth like grains; all crops and fruits; such as bananas, pomegranates, peaches and even vegetables, legume and flowers. He depended on the narration of Ibn ‘Umar, may Allah be pleased with them, who reported that the Prophet, sallallaahu ‘alayhi wa sallam, said: “On that which is watered by the heavens (i.e. rain), springs or its own roots, a tenth of the harvest is due and for what is watered by irrigation, half a tenth (i.e. twentieth) of the harvest.” [Al-Bukhari and others]

The other three Imams, may Allah have mercy upon them, believed that zakat is obligatory on edible agricultural products that can be measured by capacity (i.e. Saa‘: a measure that equals four double-handfuls of an average person’s hands) such as rice, wheat, dates and raisins. They relied on what the Prophet, sallallaahu ‘alayhi wa sallam, said: “No zakat is payable in less than five Wasqs (i.e. equals sixty Saa‘) of dates.” [Al-Bukhari and Muslim]

The same narration was reported as follows: “No zakat is payable in less than five Wasqs of dates or grain.” [Muslim and Ahmad]

This indicates that zakat is only due on edible agricultural products, provided the resulting crop is used as regular food which can be stored and planted, as stated above. As for vegetables, fresh fruits and legumes, they are not measured or stored, so no zakat is due on them.

The predominant opinion in this regard is that zakat is not obligatory on fruits and vegetables since vegetables were plentiful in Al-Madinah and fruits were abundant in the Arab markets in Taa’if. The Prophet, sallallaahu ‘alayhi wa sallam, and the Companions, may Allah be pleased with them, were never reported to have taken zakat on any of these crops.

Hence, there is no zakat on the bananas grown in this land. However, if the money that is earned from selling agricultural products reaches the due Nisab of zakat, whether by itself or when added to other money or trade goods, and the Hawl (i.e. lunar year) has passed, then zakat becomes due on that money.

Allah Knows best.


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Achieving Clean Assets and Virtuous Souls Through Zakat.

Every human being, regardless of rank or status, would want their wealth, properties or assets to be blessed. The giving of Zakat is the duty of every Muslim. It is one of the five pillars of Islam. Allah has promised great rewards for those who spend their wealth towards the path of Allah with a joyful heart and full of sincerity…..

Every human being, regardless of rank or status, would want their wealth, properties or assets to be blessed. The giving of Zakat is the duty of every Muslim. It is one of the five pillars of Islam. Allah has promised great rewards for those who spend their wealth towards the path of Allah with a joyful heart and full of sincerity. Allah declared in Surah al-Baqarah, verse 261:

(Which means): “The example of those who spend their wealth in the way of Allah is like a seed [of grain] which grows seven spikes; in each spike is a hundred grains. And Allah multiplies [His reward] for whom He wills. And Allah is all-Encompassing and Knowing.” [Al-Quran, Surah al-Baqarah, verse 261]

This verse clearly shows that the practice of zakat opens up many opportunities for each individual to fully utilise their assets. Zakat removes greed and stinginess, provides spiritual calmness as well as expand the essential rewards and blessings for wealth gained. This is the reality of the greatness of performing zakat that must be believed by those who truly devote themselves to Allah.

Based on the Zakat Report by the Zakat Collection Centre of the Federal Territories Islamic Affairs Council (MAIWP), in 2016 almost RM581 million worth of zakat was collected from various fields and categories. From that amount, it was distributed to 5 main schemes, namely for the development of asnaf (rightful recipients), education, shelter, self-reliance and the development of the ummah covering 29 types of assistance as a whole. Apart from that, the distribution also involves several educational institutions including Islamic kindergartens in the Federal Territory, Darul Ilmi and Pondok Moden Al-‘Abaqirah. Various other forms of distribution were also implemented, such as the establishment of public infrastructure, construction and improvement of infrastructure for the Islamic community, as well as distribution to welfare and shelter institutions.

These distributions clearly demonstrate that zakat institutions do play their role well when managing zakat in our country. This completely rebuffs allegations and accusations heard among the community that zakat institutions are ineffective, inefficient and have failed to assist the people. Such negative perception would somewhat bring down the dignity and credibility of the zakat institutions. Here, the concept of tabayyun (to check and verify) is important for every individual. Learn to check and verify information as well as sources before disseminating it, so as not to spread slander and cause suspicion.

Maybe we are now capable of fulfilling our hearts desires, enjoying delicious food and expensive clothes which we provide for ourselves and family, but can our conscience be at peace when we know some of our fellow brothers are sleeping in a state of hunger, undergoing the hardships of life without knowing when it will change?

Remember that through our wealth, we have a responsibility and trust that needs to be performed. Let us not always question the responsibility of zakat centres, but instead, ask what our responsibilities are in assisting such centres? Do not continue to be complacent and arrogant of the favours of wealth we have received, but remain silent, ignoring the demands of performing the zakat, infaq (donation), or charity. In a hadith narrated by Abu Hurairah and recorded by Imam al-Bukhari, Rasulullah was reported to have said:

(Which means): “Whosoever Allah gives wealth but does not perform zakat, then on the Day of Resurrection, his wealth will turn into a horned male serpent with two fangs and coiled around him on the Day of Judgment, and the snake will devour him between its jaws while saying, “I am your wealth! I am your wealth!” [Refer Sahih al-Bukhari]

To motivate our soul to easily and willingly donate or contribute part of our assets, let us look at some examples that may be followed in giving zakat or contributing towards the path of Allah. Saidatina Khadijah bint Khuwailid RA spent her wealth for Islam. Most of her properties and assets were used to liberate slaves, help poor people, assist the needy, and save friends who were suffering from financial problems. Saidina Uthman bin Affan RA donated 1,000 camels and 70 horses for the Battle of Tabuk, including 1,000 dirhams to finance the expenses of the war. Similarly, Abdul Rahman bin Auf RA also contributed his wealth for the way of Allah. Those were just some of the examples shown by the Companions on how to put wealth to good use. Their sacrifices would surely bring them great rewards.

Learn from the attitudes and morals of the Companions regarding property and asset management. Provide assistance. Lighten the burden. Indeed, the hand that gives is better than the hand that receives.

On this occasion, this blog calls upon all to fulfil the obligation of zakat through legal and recognised zakat institutions appointed by the government, such as the Zakat Collection Centre of the Federal Territory Islamic Affairs Council (MAIWP). This is because the zakat collected by such zakat institutions shall allow the fund to grow bigger so that various assistance and distributions can be made in a more orderly and organized way.

Looking back historically, Rasulullah appointed collectors (amil) from among his Companions. These appointed collectors travelled to remote villages to facilitate the collection of zakat. This proves that zakat institutions have existed since the time of Rasulullah, and is the sunnah of Rasulullah. Therefore, zakat collection centres that exist today follow the same method as shown by Rasulullah.

Make haste in doing good deeds. May all our efforts be rewarded with great blessings by Allah. In conclusions:

First: Zakat is an obligatory act of worship to purify every Muslim individual, towards achieving the blessings and pleasure of Allah.

Second: Paying zakat at institutions established by the government is a sunnah that has been practised by Rasulullah.

Third: Emulate the morals of the Companions who were always competing in performing charitable deeds, to help those who were most in need. Allah declared in Surah Ali ‘Imran, verse 180:

(Which means): “And let not those who [greedily] withhold what Allah has given them of His bounty ever think that it is better for them. Rather, it is worse for them. Their necks will be encircled by what they withheld on the Day of Resurrection. And to Allah belongs the heritage of the heavens and the earth. And Allah, with what you do, is [fully] acquainted.” [Al-Quran, surah Ali ‘Imran, verse 180]

Making a ‘Waqf’ of a Share from a Jointly Owned Asset?

Q: If I own a property jointly with another person, can I make Waqf of my half share?
A: This depends firstly on the nature of the waqf and then on the nature of the property. In the first instance, if the waqf is for the purpose of a Masjid or cemetery then it is necessary that the property being made waqf is…

This article is from alqalam.org.uk


Q: If I own a property jointly with another person, can I make Waqf of my half share?

A: This depends firstly on the nature of the waqf and then on the nature of the property. In the first instance, if the waqf is for the purpose of a Masjid or cemetery then it is necessary that the property being made waqf is the sole property of the dedicator and not subject to common ownership as the dedication of one joint owner is not enforceable upon the other.

As a result, the property would reciprocate being used as a masjid or cemetery for a period and then for another purpose for an equal period. This is not at all conducive to the proper etiquette due to a masjid or cemetery. Thus, the jurists are agreed that the waqf of property subject to common ownership for the purpose of a Masjid or cemetery is not permitted.

If the waqf is for other than a masjid or cemetery, and it is also not divisible, i.e., it cannot retain its normal utility if it is divided such as in the case of a well or stone mill, then it is permitted to dedicate such commonly owned property as waqf by general agreement of the jurists.

If the property is divisible, i.e., it can retain its normal utility if it is divided then there is a difference amongst the jurists. Imam Muhammad of the Hanafi School does not allow such waqf whilst Imam Abu Yusuf of the Hanafi School and the preponderance of jurists from the Maliki, Shafi’i and Hanbali schools allow it.

This difference is based on the difference of opinion in relation to the requirement of possession to complete the waqf. Imam Muhammad considers possession to be a requirement and so does not allow waqf of divisible property that is commonly owned. The majority do not require this and thus allow it. It would appear that the opinion of the majority is preferred not least because the dedicator or trustee has the right to demand separation of the waqf property if its management should prove cumbersome.

Introduction To Muamalat

Muamalat (Muamalah) literally means transactions. In the Shari’ah, Muamalat refer to…

DEFINITION OF MUAMALAT
Muamalat (Muamalah) literally means transactions. In the Shariah, they refer to Shariah commercial transactions, i.e men’s dealing with their properties through Shariah contracts. All Shariah contracts can be applied to Islamic finance covering banking, capital market and takaful.

“And verily, this is My path, which is straight, so follow it; and do not follow [other] ways, for you will be separated from His way. This has He instructed you that you may become righteous.” [Al-Quran, Al-An’am (6):153]

All the treasures that exist in this universe whether on land, on the sea or at the base are belongs to God’s absolutely. Man is told to possess the property provided by Allah through the knowledge and skills that he bestowed upon him. Those possessing wealth in the world are the trustee of God and are responsible for those properties. Allah said:

“It is He who made the earth tame for you – so walk among its slopes and eat of His provision – and to Him is the resurrection.” [Al-Quran, Al-Mulk (67):15]

The Element of Muamalat
There are three significant factors:
1) The activities create a responsibility;
2) It arises from mutual agreement;
3) It has the formality traits which bind the activity (offer and acceptance).

Relationship of Muamalat and Islamic Economy
1) Muamalat is social relationship which consists of various economic and non-economic activities;
2) Islamic economy are driven by fiqh muamalat;
3) Fiqh muamalat is Islamic regulations which relate to trading ‘hukm’ (law) which is the frame work for Islamic economic.

Importance of Muamalat
1) To foster cooperation among humans.
2) To produce unity and harmony in a community and country
3) To prevent cruelty
4) To produce responsible ‘ummah’ who are always competing in ‘halal’ live hood.

Basic Principles of Muamalat
Among basic principles that have roles in forming Shariah rulings in Muamalat are:
1) Freedom of contracts – The meaning of one of the Hadiths of the Prophet (peace be upon him) says that Muslims are free to put conditions in their agreements except that which prohibits something which is permissible or permits something which is prohibited. Prophet Muhammad said:

“Muslims are bound by the conditions they made; except a condition that legalises impermissible act or invalidates permissible act.” (Narrated by Imam al-Tirmidhi).

2) Permissibility as original status of matters – According to the Shariah the status of all matters other than rituals is permissible until an evidence is given that a certain matter is prohibited. Salman al-Farisi narrated that Prophet Muhammad said:

“The halal is which Allah has made Lawful in His Book, and the haram is that which He has forbidden and that which He kept silent about is permitted as a favour to you.” (Narrated by Imam Ibn. Madjah & Imam al-Tirmidhi).

3) Custom is of force – A fiqh legal maxim states that “Custom is of force”. In many Shariah commercial contacts many things become permissible following customs.

Principle of Asset (Mal) in Muamalat
The majority of Islamic jurists were of the opinion that something could be regarded as asset (mal) if it could be controlled and benefited from.

Meaning: “Something that can be controlled and benefited from according to customs.”

The Shafi’i Madzhab also provided general guidelines on what can be considered as a property. This principle strengthens the awarding of the status of asset (mal) on call warrants according to Islamic jurisprudence as outlined by Imam al-Suyuti.

Meaning: “Something is categorised as asset (mal) if it has value. That is why it can be traded, and compensation shall be paid by anyone who causes it to be damaged.”

General Prohibitions in Muamalat
Trade and commerce in Islam must conform to the requirement of the Shariah, which broadly speaking refer to:

  • Abstinence from prohibitions, (haram matters);
  • Observing that every contract possesses all its essential elements and that every essential element meets the necessary conditions.

There are many prohibitions, but these five will make Akad or contracts invalid:
Primary Prohibitions:

  • Producing and selling impure goods;
  • Producing and selling goods that are of no use therefore of no value;
  • Riba;
  • Gharar, i.e. ambiguity or uncertainty; and
  • Gambling, i.e. anything that involves betting.

Secondary Prohibitions:

  • Selling of grape to wine producer;
  • Selling of uranium to develop nuclear weapon.

Theory of Asset (Mal) in Muamalat
According to the Shariah, Asset (Mal) is anything which has value and is guaranteed by whoever damages it. Asset (Mal) is divided into four categories as follows:

1) Mutaqawwim and Ghairu Mutaqawwim
Mal Mutaqawwim is a thing that can be possessed physically and the benefit of which is permissible by the Shariah to be enjoyed, like fixed and movable assets and foods.
Ghairu Mutaqawwim is a thing that may not be possessed or the benefit of which is prohibited by the Shariah from being enjoyed, like a pig or wine.

2) Similar and Dissimilar
A similar asset is a thing which can be matched with another in a market without any difference causing a difference in price, like grains of rice or an egg. Usually they are measured in volume or weighted.
A dissimilar asset is a thing which normally cannot be matched with another in a market without any difference causing a difference in piece, like a water melon, a cow, an article of clothing or a car.

3) Fixed and Movable Asset. Like car for movable asset, and house or property for fixed assets.

4) Perishable and Non Perishable.
Perishable Asset is a thing which parishes by consumption like any kind of food.
A non-Perishable item is a thing which will not destroy with repeated use, like an article of clothing, a car or a house.

Concept of Contract (Akad) in Muamalat
Akad (al-‘Aqd) which is called as a contract is a commitment, a decision, an affirmation, or an agreement or a transaction that framed by sharia values. Akad in literal meaning is “Rabbah (binding) that is between two edges of rope and tied one of them with another with a continuous, then both into one thing” and uqdah it is: “the connection that holds both edges and ties it”.

Based on the above definition we can describe that, first akad is a relationship or meeting between the ijab and qabul related to the emergence of legal consequences. The Ijab is an offer submitted by either party, and qabul is the consent answer given by the contract partner in response to the first-party offer. The contract will not happen if the declaration of the will of each party is not related to each other because the contract is the link between the will of both parties as reflected in the ijab and qabul.

Both akad is a legal action for both parties because akad is a meeting of representatives who represent the will of one party and qabul expressed the will of the other party. One-party legal action, such as a promise of giving a gift, a testament, a waqf (wakaf), or a disposal of rights, is not akad in this definition, since such actions are not two-party acts and therefore do not require qabul.