Is Zakah obligatory on the value of trade goods ('Arud al-Tijarah)?

Primary text

Zakah is obligatory upon the value of trade goods ('Arud al-Tijarah) according to the majority of scholars. Ibn al-Mundhir narrated consensus among scholars that Zakah is due on goods intended for trade once a full lunar year ('hawl) has passed over them. This view is attributed to Umar, his son, Ibn Abbas, the Seven Jurists (Fuqaha al-Sab'a), Al-Hasan, Jabir ibn Zayd, Maymun ibn Mahran, Tawus, Al-Nakha'i, Al-Thawri, Al-Awza'i, Al-Shafi'i, Abu Ubayd, Ishaq, and the Ashab al-Ra'y (followers of opinion). The evidence supporting this obligation is the command of the Prophet (PBUH) to pay Zakah from what is prepared for sale, as narrated by Abu Dawud from Samurah ibn Jundub. Furthermore, Al-Daraqutni narrated from Abu Dharr that the Prophet (PBUH) stated, 'In camels is their Zakah, in sheep is their Zakah, and in goods (bizz) is their Zakah.' Since Zakah is not due on the item itself but on its value, and this obligation is established, Zakah is calculated based on the monetary value (Qimah) at the end of the year. A supporting account involves Umar commanding Abu Amr ibn Hamas to assess his goods (leather hides and quivers) and pay Zakah on their value, which became a renowned story not refuted, implying consensus.