Q. In your
June 1990 issue you mention on page 19: "Zakah is not liable on
diamonds, immaterial of how high their value may reach".Diamonds
are an expensive marketable commodity like any other valuable item, regardless
of whether they are used in making jewellery or retained as investment.
They bring a fairly high capital gain. When gold in any from is subject
to Zakah as is value of any other item held for long or short term investment
and business purposes. Why should the value of diamond be exempt? Muhammad
Hasan Chand Clifton, Karachi.
A. If diamonds or precious stone are purchased for trading purpose,
i.e. with a clear intention of their resale, they are certainly subject
to Zakah like any other item purchased with the same intention. But if
a diamond or a precious stone is kept for personal use only, in that case
Zakah is not obligatory on its value.
The Principle governing the levy of Zakah is that only those assets are
Zakatable which either fall within the definition of money, or are the
metals universally accepted as a medium of exchange like silver and gold.
All other assets are not zakatable unless they are meant for trade and
resale.
The precious stones, including diamonds, are, no doubt, very valuable
assets. But if they are not purchased for trading, they are not subject
to Zakah. This principle is based on a Hadith:
"There
is no Zakah on a stone"
On the basis of the above, the overwhelming majority of the Muslim jurists
are of the view that precious stones are not subject to the levy of Zakah
unless they are acquired for the purpose of resale. There are, however,
some jurists like Imam Ahmed who believe that all precious stones are
liable to Zakah, even if they are kept for personal use.
Therefore, if somebody pays Zakah on the value of these stones, it will
be free from all doubts and will promise more reward. But so far as the
mandatory nature of the levy is concerned, the view of the majority is
supportive of non- obligation of Zakah, because they are neither money
nor a universally accepted medium of exchange. Moreover, the value of
precios stones depends on their scarcity and rarencess. They have no intrinsic
value. Therefore they are like valuable antiques or manuscripts which,
on account of their rarencess, sometimes have more value than gold. Still,
they are not subject to Zakah unless they are purchased for trade or resale.
Likewise precious stones may have more value than gold. Yet, the obligation
of Zakah is not imposed if they are not meant for the trade.
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