Question
I am currently working on a project mining a number of minerals – (salt, limestone, gypsum and soda ash), gemstones (ruby, emerald etc.), and metals (copper, gold from rivers, chromite, etc.). I wish to know how do I pay Zakaat on these products. What is the method of paying Zakaat, taking into account that the metals and minerals we mine are processed locally before being exported.
Answer
The answers to your queries are as follows:
Salt, limestone, gypsum, soda ash Initially, that is when these products are extracted and taken into possession, there is no Zakaat payable. If the intention is to sell them (obviously this is your intention), then these products will be regarded as merchandise. The normal 2.5% Zakaat will become applicable on their value.
If any amount of these products are not for sale, but for any other use, then Zakaat is not payable since the rule of merchandise will not apply. Gemstones (rubies, emeralds, etc.):
The same ruling as above.
Metals (gold, silver, copper, etc.)
One fifth (20%), called Khums, is Waajib. After the metals have been processed, 20% of the value has to be given to the poor and destitute.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 24 No 07
- PDF page
- 10
Appears under ZAKAAT ON MINERALS (approximate).