A man bought a piece of land that

401

A: lands intended for trade are treated as commercial commodities. The general principle in Islamic Shari`ah is that Zakah on commercial commodities (Part No. 9; Page No. 325) is calculated upon the completion of one [Hijri] year according to market prices at the time of paying Zakah. This is so regardless of the price for which they were bought, and whether that was more or less than the price for which they were originally bought. The Zakah should be paid on the value of the commodity. The rate of Zakah is one-quarter of one-tenth. Therefore, for a piece of land that is worth one thousand riyals, for example, the Zakah is twenty-five riyals, and so on.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.