When does the hawl (one lunar year) begin for Zakat due on trade goods?
Chapter on Zakat on Trade Merchandise
Al-Mughni
Book of Zakat
Primary text
The *hawl* is a prerequisite for Zakat on trade capital. The *hawl* does not begin until the asset reaches the *Nisab*. If the value of a commodity is initially below the *Nisab*, and remains so for half a year, but its value then increases to the *Nisab* due to growth or price changes, or if it is sold for a value reaching the *Nisab*, or if other trade goods or cash are acquired during the year completing the *Nisab*, the *hawl* must restart from that point, and the preceding time period is disregarded. This is the position of Al-Thawri, the people of Iraq, Al-Shafi'i, Ishaq, Abu Ubayd, Abu Thawr, and Ibn al-Mundhir. If the capital reaches the *Nisab* and then drops below it during the year, and later rises again to the *Nisab*, the *hawl* must be restarted due to the interruption caused by the deficit.
Supporting text
Malik holds that the *hawl* commences even if the value is below the *Nisab*, and if the value reaches the *Nisab* at the end of the year, Zakat is due. Abu Hanifa maintains that the value is considered only at the beginning and the end of the year, not in the middle, because valuation throughout the entire year is difficult, except at the end where valuation is necessary to establish the due date. The counter-argument against the difficulty of valuation is that assets close to the *Nisab* are easy to assess; if exact valuation remains difficult for those near the threshold, the owner may pay Zakat early or maintain records diligently, similar to recording the timing of newly acquired assets.