Surah Al-Baqara (2) — Ayah 267

(Ayah 267) ➊ {اَنْفِقُوْا مِنْ طَيِّبٰتِ … :} In the previous verses, it has been explained that for the acceptance of charity, donations, and spending in the way of Allah, the condition is sincerity and faith, and it has also been explained that charity is wasted by showing off, reminding of favors, and causing hurt, and then this has been clarified with examples. Now in this verse, another condition for the acceptance of charity is mentioned: the thing given in charity must be good and pure; if someone gives something inferior, it will not be accepted by Allah. Bara’ bin Azib (may Allah be pleased with them both) says that this verse was revealed about us, the Ansar. We were people of date palms, so each person would bring according to his trees, more or less, and hang a bunch or two in the mosque. The people of Suffah had nothing to eat, so when one of them felt hungry, he would come to the bunch, strike it with his staff, and half-ripe and ripe dates would fall, which he would eat. Some people, who were not inclined towards good deeds, would bring inferior and bad bunches, even broken ones, and hang them. So Allah Almighty revealed this verse: «يٰۤاَيُّهَا الَّذِيْنَ اٰمَنُوْۤا اَنْفِقُوْا مِنْ طَيِّبٰتِ مَا كَسَبْتُمْ » The meaning is that if any of you were given a gift like what he has given, he would never accept it, except out of tolerance and shyness. Bara’ (may Allah be pleased with him) says, after this, each of us would bring only his best. [ترمذی، التفسیر، باب ومن سورۃ البقرۃ : ۲۹۸۷ و صححہ الألبانی ]

Although in the reason for revelation, voluntary charity is mentioned, this ruling includes both obligatory zakat and voluntary charity. Sahl (may Allah be pleased with him) says: “The Messenger of Allah (peace and blessings be upon him) forbade accepting { ”جُعُرُور“ } and { ”لَون الحُبَيْق“ } (two inferior types of dates) in charity.” [أبوداوٗد،الزکوٰۃ، باب ما لا یجوز من الثمرۃ … : ۱۶۰۷، و صححہ الألبانی ]

➋ In { ”لَسْتُمْ بِاٰخِذِيْهِ“ }, the emphasis on negation in { ”لَسْتُمْ“ } is due to the use of the letter باء in {”بِاٰخِذِيْهِ“}, so the translation is: “You would never accept it.”

➌ The word { اَنْفِقُوْا مِنْ طَيِّبٰتِ مَا كَسَبْتُمْ … :} (Tayyib) is used for good wealth, and it also includes wealth earned through lawful means. Thus, the meaning is: spend pure and lawfully earned wealth in the way of Allah; charity from impure, i.e., unlawful wealth, is not accepted. The Messenger of Allah (peace and blessings be upon him) said: “Indeed, Allah is pure and accepts only that which is pure.” [مسلم، الزکٰوۃ، باب قبول الصدقۃ … : ۱۰۱۵، عن أبی ہریرۃ رضی اللہ عنہ ]

➍ { مَا كَسَبْتُمْ وَ مِمَّاۤ اَخْرَجْنَا لَكُمْ مِّنَ الْاَرْضِ :} The main sources of human earnings are four: agriculture, industry, trade, and employment. Whatever the means of earning, if it reaches the nisab and a year passes over it, then one-fortieth, i.e., two and a half percent zakat, must be given. Some people say there is no zakat on trade goods; Imam Bukhari (may Allah have mercy on him) refuted them by reasoning from this verse. [بخاری، الزکوٰۃ، باب صدقۃ الکسب والتجارۃ، قبل ح : ۱۴۴۵] However, the tithe (ushr) on crops obtained from the land must be paid as soon as the crop is harvested, if it reaches the nisab, which is 600 kilograms. In this verse, « وَ مِمَّاۤ اَخْرَجْنَا لَكُمْ مِّنَ الْاَرْضِ » refers to the tithe or half-tithe on crops. If the land is irrigated by drawing water, then 5 percent; if by rain or canal, then 10 percent. For details, see my booklet “Ahkam Zakat wa Ushr.”

➎ { غَنِيٌّ حَمِيْدٌ : } That is, Allah has no need of your wealth; He is the most self-sufficient and worthy of all praise. This command is for your own benefit.

267. 1. For the acceptance of charity, just as it is necessary that it be free from show-off, as mentioned in the previous verses, it is also necessary that it be from lawful and pure earnings, whether through business (trade and industry) or from the produce of crops and orchards. And it is said that do not intend to spend impure things in the way of Allah. By impure, firstly, those things are meant which are from unlawful earnings; Allah does not accept them. In the hadith, it is said: "Indeed, Allah is pure and does not accept except what is pure." (اللہ تعالیٰ پاک ہے پاک حلال چیز ہی قبول فرماتا ہے) Secondly, impure also means inferior and useless things; inferior things should also not be spent in the way of Allah, as is also the implication of verse (لَنْ تَنَالُوا الْبِرَّ حَتّٰى تُنْفِقُوْا مِمَّا تُحِبُّوْنَ) 3:92. In the narration of the reason for revelation, it is mentioned that some of the Ansar of Madinah used to give spoiled and useless dates as charity in the mosque, upon which this verse was revealed. (Fath al-Qadeer, referencing Tirmidhi, Ibn Majah, etc.)

267. 2. That is, just as you yourselves do not like to take inferior things, in the same way, do not spend inferior things in the way of Allah, rather spend good things.

267. O you who believe! Spend from the good things you have earned [383] and from what We have produced for you from the earth in the way of Allah. Do not intend to spend the inferior things, which you yourselves would not accept unless you overlook their defects. And know that Allah is Self-Sufficient, Praiseworthy by all creation.

[383]
Charity of Deficient Goods:

Bara’ bin Azib ؓ says that this verse was revealed concerning us, the group of Ansar. We were people of date palms. Each of us would bring dates according to his means, some would bring one bunch, some two bunches, and hang them in the mosque. The condition of the people of Suffa was such that they had nothing to eat. When any of them would come, he would strike the bunch with a stick, and fresh and dry dates would fall, which he would eat. And those who were not inclined towards virtue would bring such bunches in which there were inferior and bad dates, and would bring broken and damaged bunches. Then Allah revealed this verse. Bara’ ؓ says that after this, everyone started bringing good dates. [ترمذي، ابواب التفسير] From this verse, it is understood that just as zakat is obligatory on the produce of the land, it is likewise obligatory on the wealth of industry and trade. Also, only good and pure wealth should be spent; inferior and bad wealth should not be given in charity. For the zakat of trade and industry wealth, see the following ahadith and rulings.

The Obligation of Zakat on Commercial and Industrial Production:

In the Prophetic era, although trade was the occupation of the Quraysh of Makkah, their method was quite different. Twice a year, trade caravans would set out for Syria with goods, then bring goods from there and sell them in Makkah, then start preparing for the next journey. Therefore, permanent shops were rarely seen. Similarly, industry was also very limited and on an individual level. Therefore, the rulings of trade and industry wealth are not mentioned in detail in the ahadith as are the details of other zakat items, and perhaps this is the reason that most people are unable to pay zakat on trade and industry wealth, and it is also quite possible that people do not even know about the obligation of this type of zakat or do not believe in it. Therefore, detailed discussion on this subject is necessary. The greatest evidence for zakat on wealth of industry and trade is this very verse. Because trade and industry are also a person’s earning, and this is supported by the following ahadith:
1. Hazrat Abu Musa Ash’ari ؓ says that the Prophet ﷺ said that it is obligatory for every Muslim to give charity. The people asked: O Messenger of Allah ﷺ! What if someone has no wealth (what should he do)? He ﷺ said: He should work with his hands, benefit himself, and also give charity. The people asked: If he cannot do even this? He ﷺ said: Then he should act upon good things and avoid bad things, this too is charity for him. [بخاري، كتاب الزكوٰة، باب على كل مسلم صدقة]
2. Hazrat Samurah bin Jundub ؓ says that the Messenger of Allah ﷺ used to command us to pay zakat on all those things which we prepared for buying and selling. [ابو داؤد، دار قطني، بحواله منذري فى مختصر سنن ج ، 2 ص 115] From this hadith, it is understood firstly that zakat is due on every saleable item, whether its source is trade or industry, and secondly, that zakat is not due on things that are not for sale, such as shop furniture and sacks, or factory machinery, or agricultural tools and ploughing oxen, etc. That is, anything that is a means of production is not subject to zakat, and this principle is also supported by another hadith which is: «ليس فى العوامل صدقه وفي الإبل» [ابو داؤد، كتاب الزكوٰة، باب فى زكوٰة السائمة]

The Obligation of Zakat on Industrial and Commercial Wealth:

3. Hazrat Abu Dharr says that the Prophet ﷺ said: There is zakat on camels, there is zakat on goats, there is zakat on cows, and there is zakat on commercial cloth. [دار قطني، كتاب الزكوٰة، باب ليس فى الخضروات صدقة] In this hadith, the word “bazz” is used for commercial cloth, and “bazzaz” means cloth merchant. From this hadith, the obligation of zakat on other commercial goods is also established.
4. Hazrat Amr bin Hamaas used to make leather quivers and arrows, that is, this was his profession. Hazrat Umar ؓ passed by him and said, “Pay zakat on these.” Abu Amr said, “What do I have except these arrows and leather quivers?” Hazrat Umar ؓ said, “Calculate their value and pay zakat on them.” [احمد، ابن ابي شيبه عبد الرزاق، دار قطني بحواله الام للشافعي ج 2 ص 38 مطبعه المنيريه قاهره]
From this command of Hazrat Umar ؓ, the obligation of zakat on industrial production is also established.
5. And the practice of Hazrat Umar ؓ was that during his caliphate, he would collect the wealth of traders, then calculate all the present and absent wealth, and then collect zakat on all that wealth. [المحليٰ ج 6 ص 34 مطبعه المنيريه قاهره] Now, let us turn to the commentators, they explain the meaning of ﴿اَنْفِقُوْا مِنْ طَيِّبٰتِ مَا كَسَبْتُمْ﴾ as follows: «زكوامن طيبات ماكسبتم بتصرفكم اما التجارة و اما الصناعة» That is, pay zakat from whatever you have earned by your effort or labor, whether it is earned through trade or industry. [تفسير طبري ج 2 ص 80 طبع 1372ه /1954ء تفسير ابن كثير ج 1ص 40 تفسير قرطبي ج 2 ص 320، طبع 1936ء، تفسير قاسمي ج 2 ص 683 طبع 1376 ه/ 1957ء] Moreover, rationally, it seems very strange that a poor farmer should pay one-tenth or one-twentieth of his produce as zakat, and a rich merchant who earns millions with much less effort than the farmer should not be liable for zakat at all—this is extreme injustice.

Principles for Determining Zakat on Commercial Wealth

1. The determination of zakat wealth will be at the place where the wealth is present. [ابو داؤد، كتاب الزكوٰة باب اين تصدق الامواي]
2. It is better to take zakat from the same wealth on which zakat is due. For example, if it is a cloth shop, then the zakat collector should take cloth as zakat, or if the zakat giver wishes, he can give the zakat of cloth from cloth itself. Similarly, the zakat of books from books, goats from goats, and this is the general principle of zakat in which the convenience of the zakat payer is considered. However, if the zakat payer himself wants to pay in cash, he can do so, and in this too, the convenience of the zakat payer is considered. For example, it is not necessary that the zakat of gold or silver jewelry be given in the form of gold or silver; rather, its current value can be calculated and one-fortieth given as zakat.
3. Neither the best nor the worst goods should be taken in zakat, but an average should be considered. When the Messenger of Allah ﷺ sent Hazrat Mu’adh ؓ as governor to Yemen, among the instructions he gave regarding the collection of zakat was: iyyaka wa kara’ima amwalin-nas [بخاري، كتاب الزكوٰة باب اخذ الصدقة من الاغنياء و ترد فى الفقراء حيث كانوا] that is, avoid taking the best of people’s wealth. For example, if zakat is to be collected from a bookshop, it should not be that the best books of a famous author, which are in high demand in the market, are selected; rather, a mixed or average type of goods should be taken in zakat. Similarly, if the zakat payer himself wants to take out zakat, he should not give the unsellable goods as zakat, but either give all types of goods or only average quality.
4. The valuation of goods will be according to cost, i.e., the purchase price of the item including transportation and other expenses, not the selling price.
5. Furniture and sacks, etc., will not be counted among zakatable wealth, as detailed above.
6. Zakat will be taken out after the completion of a year, and this year will be counted as a lunar year, not a solar year. The Messenger of Allah ﷺ used to send zakat collectors in the month of Rajab, but this is not necessary. Nowadays, most people pay zakat in Ramadan. This is also better because the reward is greater in Ramadan. However, zakat can be paid in full or in part before the completion of the year. Hazrat Ali ؓ says that Hazrat Abbas ؓ asked the Messenger of Allah ﷺ about this, and he ﷺ permitted it. [ترمذي، ابواب الزكوٰة، باب فى تعجيل الزكوٰة]
7. The rate of zakat on commercial wealth is the same as that on savings, i.e., one-fortieth. Because the capital invested in trade is all savings.
8. Zakat will be due on the present wealth. For example, Zaid started business with ten thousand. After a year, the value became twelve thousand, so zakat will be calculated on twelve thousand, not ten thousand. Similarly, if he suffered a loss or household expenses were more than the profit and the value remained only eight thousand, then zakat will be calculated on eight thousand.
9. Goods sold on credit will also be counted as capital, unless it is such a debt that there is no hope of recovery. Such a debt will not be counted. The ruling regarding such a debt is that whenever it is recovered, zakat should be paid on it once. The same applies to ordinary debts besides commercial debts.
10. If a shopkeeper has borrowed money from someone and invested it in his capital, then either he should return the loan before paying zakat, otherwise it will be counted in his capital.
11. Mixing of acquired wealth. For example, Zaid started business with ten thousand. After a few months, he received five thousand from someone and included it in the business. Now, if he wishes, he can keep a separate account for the later amount after a year. But it is better to take out zakat on that wealth along with the rest, so as to avoid future complications in accounting. Then, even if a little more zakat is paid, Allah is the best rewarder.
12. Some shops have a good turnover, but there is little or no stock in the shop. For example, vegetable sellers, fruit sellers, milk sellers, butchers, hotels, newspaper offices, or property dealers’ offices, etc. In such shops or business institutions, the question of reaching the nisab of goods does not arise. For such people, zakat will be due on annual profits at the rate of two and a half percent, or one-fortieth.
13. Milkmen or Gujjar people do not have shops at all, just a wooden plank or platform is their shop. These people keep a large number of cows and buffaloes. Zakat of livestock is not due on them because they are means of production. Zakat will be due on their annual profits as commercial zakat. The same applies to dairy farms, poultry, and fish farms, etc.
14. If cows and buffaloes are kept for breeding, then zakat will be due on them as per the rules for cows. And if someone is engaged in the business of buying and selling livestock, then zakat will be due on annual profits as commercial zakat. And if they are with dairy farms or milkmen, then they are means of production. Their zakat will also be on annual profits.
15. On the rent of shops and houses, or taxis and vehicles given on rent, zakat is not due on the value of such things, i.e., shops, houses, or taxis, but on the total amount of rent received, and this will be calculated after a year. For example, if the rent of a shop is two thousand, then after a year, zakat will be paid on twenty-four thousand, even if this amount is spent along the way. Imam Ahmad bin Hanbal, may Allah have mercy on him, used to pay zakat on his rental shops in this way. However, from this amount, property tax or other government dues can be excluded.
16.
Business of Buying and Selling Property:

Those who, with their surplus capital, keep buying and selling plots of land and houses for commercial purposes, there is no knowing when they will be sold—whether after three months or even after two years. Whenever such property is sold, zakat should be paid at that time, and this zakat will be on the sale price and will be commercial zakat. However, if someone buys a shop, house, plot, or vehicle for personal use, then there is no zakat on it.
17. Regarding capital invested in joint ventures or companies, it should be ascertained whether the company pays zakat on the total capital or not. If the company has not paid zakat, then each shareholder should pay zakat on his own share.

Zakat on Industrial Production:

In two respects, industrial production resembles agricultural production. For example:
1. The value of land itself is much greater than its produce, and zakat is levied on the produce, not on the value of the land. Similarly, the value of factories and mills is much greater than the value of the production they generate. Therefore, zakat should be on the production.
2. Just as some lands yield one crop a year, some two, and some even more, similarly, some factories produce once a year, e.g., ice and electric fan factories, some twice, like brick kilns, and some operate all year round. And in one respect, industrial production resembles commercial wealth: just as the profit margin in commercial goods is less compared to the cost, so is the case with industrial goods, whereas in agricultural produce, the cost is less and the value of the produce is much higher. Taking all these matters into account, the principle that can be honestly deduced is that zakat on industrial production should be on the profit of the production, and it should be five percent, i.e., half of one-tenth, whether the production is once a year or twice, and if the factories operate all year round, zakat will be due after a year, but the method will be the same, i.e., zakat will not be on the production but on the profit, and it will be five percent. «والله اعلم بالصواب »