Is Zakat due on the packaging used in sales?

packaging

Question:

I have a food catering business. Is Zakat due on the packaging used? For example, food containers, carrier bags etc?

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The Answer:

If one is billing and charging customers for packaging, the packaging will be a Zakatable business asset. If customers are not billed nor charged for the packaging, packaging will not be Zakatable[1].

If packaging is treated as an overhead expense and is not billed directly to the customers, the packaging will not be Zakatable. In such a scenario, it will be considered as though one gifts packaging and thus, it is not a Zakatable asset.

The Fiqh (jurisprudence of the answer):

Goods purchased to resell become Zakatable business assets. Such assets are Zakatable. Therefore, packaging purchased to resell becomes Zakatable.

And Allah Ta’ālā Alone Knows Best

Mufti Faraz Adam,
www.darulfiqh.com

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[1] AAOIFI Shariah Standards (2015), Shariah Standard No.35 Zakat, Bahrain: AAOIFI

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