Statement on the so-Called ... Date Added: 30-01-2020

Ijtihad & Taqlid Date Added: 27-01-2020

Significance Behind Prophet ... Date Added: 10-11-2019

Prophet Mohammad (PBUH): ... Date Added: 07-11-2019

Forbearance is the Basis ... Date Added: 04-01-2021

The Participation in ... Date Added: 11-11-2020

The General Iftaa` ... Date Added: 25-10-2020

Prophet Mohammad (PBUH) ... Date Added: 24-09-2020

Fatawaa


Subject : A Merchandiser is Recommended to Reduce his Amount of Profit

Fatwa Number : 3623

Date : 07-07-2021

Classified : Transactions & Marketing

Fatwa Type : Search Fatawaa


Question :

I work in cellphones trade by installments and cash sale. Is there any specific percentage determined by Sharia? And am I permitted to have 100% as a profit?



The Answer :

All perfect praise be to Allah, The Lord of The Worlds, and may His peace and blessings be upon our Prophet Muhammad and upon all of his family and companions.

  In principle, the permissibility in a sale contract is based on the mutual consent between the two parties (Merchandiser and buyer/purchaser), as Allah, The Exalted, said (What means):" O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent, and kill not one another. Lo! Allah is ever Merciful unto you." [An-Nisa'/29] ;as regards, the quantity, price and profit of the goods in addition to their kind whether they were of a value according to the perspective of Sharia.

  In this regard, 'Urwa al-Bariqi (May Allah be pleased with him) narrated: The Prophet (PBUH) gave him a Dinar to buy a sacrificial animal or a sheep. He bought two sheep with it, sold one of them for a Dinar and came back to him with a goat and a Dinar. So he invoked blessings on him in his business dealings, and he was such that if he had bought soil (of the earth) he would have made profit from it." [Related by Al-Bukhary]. And this an evidence on the permissibility of having 100% as a profit.

  The International Islamic Fiqh Academy states in its 5th meeting what follows: " Merchandisers' profits aren't determined by a certain percentage in their transactions; rather, they are related to the conditions of trading, merchandisers and goods' in compliance with what Sharia morals calls for such as kindness, satisfaction, generosity and ease in sales and purchases."

  Further, a merchandiser is recommended to reduce the profit gained from people in accordance to their conditions, since the Prophet (PBUH) said (What means):"May Allah show mercy to a man who adopts a kind attitude when he sells, buys and demands for the repayment of loans."  [Related by Al-Bukhary].

  Furthermore, it is impermissible for a merchandiser to delude people as regards the amount of profit he is gaining, because the Prophet (PBUH) said (What means):" Khilabah (To lure people in financial transactions) is not lawful for the Muslim." [Related by Ibn Majah)

.

  Consequently, a profit in principle, should be based on the mutual consent between the two parties and there is no limitation of merchandiser's profit according to Sharia ;yet, basics of kindness's code are to be observed while dealing with people such as facilitation and easement. And Allah knows best.

 




Comments

 

Name *

E. mail Address *

Country

Comment Title *

Comment *

 
 

Warning: this window is not dedicated to receive religious questions, but to comment on topics published for the benefit of the site administrators—and not for publication. We are pleased to receive religious questions in the section "Send Your Question". So we apologize to readers for not answering any questions through this window of "Comments" for the sake of work organization. Thank you.