Requires detailWorship · Zakat
How Should Raw Materials be Valued in a Business for Zakat?
The question, as received
How should raw materials be valued in one’s business?
The answer
Raw materials which form part of the sale items are Zakatable. They should be valued in their current state as raw materials by what they are currently worth in the industry and specific sector. If no obvious valuation exists, one may use the cost price to value raw materials for one’s Zakat calculation.
In short: value raw materials at their current market worth, or cost price if none exists.
And Allah knows best.
Mufti Faraz Adam
Based on the Hanafi school and on the question as it was asked. Another mufti may reach a different conclusion. Read the disclaimer.