❖ Question:
If non-fruiting trees are cut down and sold, does Zakat or Ushr become obligatory on them?
❖ Answer by: Shaykh ʿAbd al-Wakīl Nāṣir ḥafiẓahullāh
❖ Ruling on Zakat and Ushr for Non-Fruiting Trees
◈ Ushr or half-Ushr does not apply to non-fruiting trees, because the concept of Ushr is specific to agricultural produce like fruits, grains, and similar harvests derived from the earth.
◈ Wood or similar materials are not included in this category; hence, Ushr is not applicable to such trees.
❖ Zakat When Trees Are Considered Trade Goods
✔ If the trees are planted and sold for commercial purposes, with the intention of earning profit, then these trees qualify as trade goods (Māl al-Tijārah), and Zakat becomes obligatory on them.
✔ In such a case, 2.5% Zakat will be due on the value of the trade goods at the end of the Islamic lunar year, provided the value reaches the nisab (the minimum threshold).
❖ Method of Calculating Zakat on Commercial Trees
① Determine the market value of the trees that remain unsold at the end of the year.
② Include the value of the trees or wood already sold, if payment is still pending.
③ Add any cash savings or bank balance derived from this trade.
④ Subtract any outstanding debts or dues related to the trade.
⑤ Zakat is then paid at the rate of 2.5% on the remaining balance.
❖ No Ushr or Half-Ushr Applicable
✔ As clarified, non-fruiting trees do not fall under the category of produce eligible for Ushr or half-Ushr.
✔ Only Zakat as trade goods is applicable, and that too under specific conditions:
- The trees are meant for trade.
- The total value reaches the nisab (value of 612.36 grams of silver).
- A lunar year has passed over the ownership.
❖ Summary
❖ Ushr or half-Ushr is not obligatory on non-fruiting trees.
❖ If they are being sold commercially, then Zakat (2.5%) applies as trade goods at the end of the year, provided all Zakat conditions are fulfilled.
❖ All related expenses and liabilities should be considered when calculating the due Zakat.
May Allah ﷻ grant us understanding and help us fulfill our financial obligations in accordance with the teachings of Islam.
