one who holds merchandise in anticipation of a price rise—that is, one who buys goods when prices are inexpensive and stores them until prices rise—or one who turns over his stock regularly, like shopkeepers; and whether the merchandise consists of clothing, new or worn; foodstuffs, whether staples, fruit, condiments, or anything else; vessels, such as earthenware and the like; or animate property, such as enslaved persons, horses, mules, donkeys, fodder-fed sheep, or anything else. Trade goods constitute the bulk of the non-manifest wealth of urban populations, just as livestock constitute the bulk of manifest wealth.

[Section: Ownership Is Required for Zakat]

Section

Ownership is required for zakat.

They differed, however, regarding possession. Accordingly, they hold three views concerning zakat on property not in one’s possession, such as a debt owed to one:

The first is that zakat is due on every debt and every tangible asset, even if it is not in its owner’s possession, such as property wrongfully seized or lost, a debt denied by the debtor, or a debt owed by someone insolvent or delaying payment. Zakat on anything that can be collected must be paid immediately, such as a debt owed by a solvent person. This is one of al-Shāfiʿī’s two positions and the stronger of the two.

[Section: Discharging Zakat by Paying the Equivalent Value]

Section

Scholars hold three views concerning discharging zakat by paying the equivalent value:

The first is that this is sufficient in all circumstances, as Abū Hanīfa held.