What type of Zakat is due on livestock purchased for trade when the Hawl (full year) passes while the animals are subject to valuation (Sumum) and the intention to trade remains?
Chapter on Zakat on Trade Merchandise
Al-Mughni
Book of Zakat
Primary text
When livestock purchased for trade reaches the value of Nisab (prescribed minimum) and a full year passes while the intention to trade and the valuation remain, Zakat of Trade (Zakat al-Tijarah) is due. This view is held by Abu Hanifa and Ath-Thawri. The reasoning for prioritizing Zakat al-Tijarah is that it is more beneficial for the poor because it is levied on the increase in value. Furthermore, the cause for its obligation has been established over the asset, just as it would be if the asset had not reached the Nisab threshold through valuation alone.
Supporting text
Malik and Shafi'i (in his later opinion) contend that Zakat of Livestock (Zakat al-Sumum) is due because it is considered stronger due to the consensus upon it and its direct relation to the physical asset (Al-'Ain), making it preferable.