(#129)
السلام عليكم
Respected Mufti Sahib,
With regards to long term debts (Gem Visa) where the consumer is given 6 months for certain purchases and some it’s even more months (36, 60 etc). Will all of them be classed as one (long term debt) and just take out only that month’s instalment or will 6 months be classed separately and the entire debt be paid off if one has the sufficient funds? Note: either way even after the debt is paid off, one will still be Saheb Nisaab. So just need clarification on whether or not to deduct the 6 month debt or not when calculating the Zakaah amount.
جزاكم الله خيرا
Answer
بسم الله الرحمن الرحيم
السلام عليكم و رحمة الله و بركاته
حامدا و مصليا و مسلما
Muhtaram
We have received your query with regards to the long term debts and Zakaat, Our response is as follows:
First and foremost, clause no 12.6.2 of the GEM VISA CONDITIONS OF USE states the following:
If you do not pay the full balance of all retail purchases specified on a statement by the payment due date, you will be charged interest on: (a) all retail purchases specified in that statement; and (b) any retail purchases made from the start of the next statement period. Interest will be charged from the date of the retail purchase until the end of next statement period.[1]
Some of the scholars are of the view that a Muslim should not involve in such agreements wherein one agrees to pay interest if there is delay in payment. The reason is that it may happen that one delays in the payment of the bill, whereby he will be liable to pay interest. However, some other Ulama are of the view that if a card holder is CONFIDENT that he will pay the bills within the specific period without fail he can avail of such an agreement.[2] Therefore, precaution demands that a person avoids any activity which could even possibly lead to one’s destruction in this world or especially the hereafter.
Now with regards to your question on long term debts and Zakaat, you cannot consider the entire long term debt as a Zakaat liability to be deducted from your Zakaatable assets. In such a case, some Ulama hold the view that the person may only deduct the instalment of the month in which his Zakaat becomes due. Other Ulama grant leeway of deducting a full year’s instalments as a Zakaat liability. In both views, there is no leeway of deducting the entire debt as a liability because the entire debt is not a current liability as its payment stretches over a lengthy period.
Therefore, it is best that you only subtract the instalment of one month and thereafter you should discharge your Zakaat on the remainder amount (if it reaches Nisaab)
And Allah Ta’ala knows best
Muhammad Irshad Motara
6th Shawwal 1441
29th May 2020
Checked and Approved by
(Mufti) Musayyab Sahib
[1] https://assets.latitudefinancial.com/legals/conditions-of-use/gemvisa-nz/cou.pdf
[2] Ref: Contemporary Fatawaa (Mufi Taqi Uthmani Madda-Zilluh) (pg. 117) Fiqhul Buyoo 452/1 and Fatawa Darul Uloom Zakariya 386/5
