4. It is likewise authentically reported from Umar ibn al-Khattab, may Allah be pleased with him, that he told a man: “Pay the zakah on your wealth.” The man replied, “I possess nothing but quivers and hides.” Umar said, “Appraise them, then pay their zakah.” (1) Ahmad cited this report as evidence.

5. Were we not to hold that zakah is obligatory on trade goods, many wealthy people would have no zakah due on their wealth.

Accordingly, we say that zakah on trade goods is obligatory on the basis of both textual evidence and sound reasoning.

However, zakah on trade goods is subject to conditions which the author has indicated:

“If he acquires them through his own action, with the intention of trade, and their value reaches the nisab, he must pay zakah on their value . . .”

His statement, “If he acquires them through his own action, with the intention of trade, and their value reaches the nisab,” indicates the following:

The first condition is that he acquire them through his own action—that is, by his own choice. This wording includes acquiring them through an exchange, such as purchase, or without an exchange, such as receiving a gift or accepting a present, and the like. In other words, they entered his ownership by his own choice.

The second condition is that he acquire them with the intention of trade; that is, the intention to trade must coincide with acquiring ownership. Thus, if he acquires them without intending trade and only forms that intention afterward, they are not deemed trade goods according to the well-known position of the madhhab. The difference of opinion on this will be discussed later.

The third condition is that their value reach the nisab.

His statement, “and their value reaches the nisab,” means their value, not the goods themselves. Thus, if a person had