Must Zakat on trade goods (Arud) be paid from their monetary value or can it be paid from the goods themselves?
Chapter on Zakat on Trade Merchandise
Al-Mughni
Book of Zakat
Primary text
The primary position is that Zakat must be paid based on the monetary value of the trade goods, not the commodity itself. This is one opinion attributed to Al-Shafi'i. The rationale is that the *Nisab* (threshold) for these goods is assessed by value, thus the Zakat obligation stems from that value, similar to other forms of wealth where the obligation relates to the measure of value, not necessarily the physical asset itself.
Supporting text
An alternative view, held by Abu Hanifa, permits the person to choose whether to pay Zakat from the value or from the commodity itself, analogizing it to other forms of wealth upon which Zakat is due, where payment from the asset is permissible.