Is Zakath payable on Jewellery being used

Zakath is one of the five pillars of Islam and is ordained in various forms, one of which is giving of 2.5% of one’s savings. The term ‘savings’ refers to those belongings that are kept throughout the year and not employed for one’s use. The items that have been brought in one’s use are exempt from zakat. As a result, zakat would be applicable on realty that has not been used over the course of a year but not on a house in which one lives – the former considered savings, the latter an item of use.

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The case of jewelry, however, is unclear. Based on a few narratives ascribed to the Prophet Muhammad (pbuh) one opinion holds that zakat be paid on gold and silver irrespective of its use over the year. In other words, jewelry is unconditionally considered savings and not an item of one’s use.

This article highlights different opinions regarding this issue and attempts to derive a conclusion, which, in this author’s view, presents the right approach towards the issue of zakat on jewelry.

Ibn Rushd has quoted the following opinions regarding zakat on gold jewelry:2

Imam Malik, Imam Lais and Imam Shafii opine that there is no zakat on it if used in garments and for beautification. Imam Abu Hanifah and his fellows believe in paying zakat on it.Ibn Rushd explains that the latter group arrived at the decision that zakat must be paid based on jewelry being analogous to savings. The other group has held it rather similar to household items, which are owned for benefiting from their utilization and zakat is not due on such items.

There are also a number of narratives in the books of hadith, a few of which seem to indicate that zakat must be paid on jewelry while others indicate that zakat is not payable on jewelry in use. The narratives and discussion on them is noted at the end of this article.

In addition to these narratives, the following verse of Quran is also used to derive that zakat is unconditionally applicable on jewelry:3

وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ وَالْفِضَّةَ وَلاَ يُنفِقُونَهَا فِي سَبِيلِ اللّهِ فَبَشِّرْهُم بِعَذَابٍ أَلِيمٍ ... And those who hoard up gold and silver and do not expend them in the way of God, give them the news of a painful punishment. ... (Quran 9:34) However, neither this verse’s context nor its words indicate that those who treasure gold and silver without paying zakat will be subject to the torment. On the contrary, the verse clearly states that, irrespective of whether they pay zakat or not, those who treasure gold and silver and do not spend in the way of God will be subject to punishment.4

This verse does not resolve the question of whether keeping gold and silver for personal use falls under the categorization of ‘hoarding’ or not. It is only after it is determined that such an action is considered as ‘hoarding’ that it becomes condemnable. In addition, while zakat is obligatory spending in the way of God, the implication in this verse is actually that of voluntary charity and contributions.

In light of the above discussion, there seems no sound argument to hold jewelry separate from the general principle on which zakat is calculated. Jewelry is indeed a need of a woman and is used for beautification. At the same time, jewelry is also used as a form of savings in many cases. Consequently, it can be said that jewelry can be divided into two groups: 1) that which is kept because of need – that is, what is generally worn by its owner – and, 2) that which is kept primarily as savings. It is the latter on which zakat must be considered as obligatory, and the former falls in the category of any other valuable item that has been acquired for use, such as a house or a car. There is no difference between these valuable items, and a house acquired for living in it &ndash irrespective of their value, none is subject to zakat.