Question Summary:
Please advice about the Al-Mabroor cattle feeding scheme. Is Zakaat payable on the full investment amount? Or just the profits?

Question Detail:

Please advice about the Al-Mabroor cattle feeding scheme. Is Zakaat payable on the full investment amount? Or just the profits? What about the market value of the cattle at the time of paying Zakaat?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
Generally, in the Al-Mabroor Cattle Investment Scheme, one invests in the scheme with the intention of purchasing cattle for resale and capital gain. As such the cattle will be treated as merchandise/stock in trade. Hence, the laws of zakāt on merchandise will be applicable and not the laws pertaining to zakāt on animals.[1]
 
Zakāt is obligatory on the current market value on the day of calculating one’s zakāt.  For example, a person invested R5 million in the Al Mabroor Cattle Scheme.  On the day of calculating one’s zakāt, the market value of one’s investment is R 5,500,000.  If one’s liabilities do not exceed one’s assets, then such a person will be obligated to pay zakāt of 2.5% of R 5,500,000 plus the value of other zakātable assets.
 
You may contact Al-Mabroor directly regarding the evaluation of your investment assets for Zakaat computation. The Darul Iftaa only advises Al-Mabroor Investments in an external capacity and is not responsible for management.
 
And Allah Ta’āla Knows Best
 
Ismail Desai,
Darul Iftaa
 
Checked and Approved,
Mufti Ebrahim Desai.