Non-Cash Equivalents and their Appraisal Standard for Zakat
Question
Asalamu aleykum.
I have $100 due of zakat upon me. I want to give food to a zakat recipient instead of the cash itself. I purchased $100 of food from the grocery store and distributed it to the poor.
My question is, I spent $100 at the store, the store sells items and makes a profit, so I bought $100 of items, but value wise they may be worth 80$ considering the profit the store makes on each item. When I give the items of food to the poor, I’m giving them items the value of which is $80, but I spent $100 on them at the store, so since $100 was due upon me and I did use it to buy groceries but only $80 worth ended up in the hands of the poor, do I still have to give another $20 in zakat to free myself of the obligation or does me spending $100 buying the food suffice me?
Answer
In the Name of Allah, the Gracious, the Merciful.
If the seller is selling at the average price at which the item is being sold on the market, you do not have to give zakat for anything more.
If the seller is selling at a higher price than the average seller would, you would need to give zakat for the difference.
