#108: Is there a Limit to Profit Percentage?
Asalamu aleikum warahmatullah wabarakaatu. Ya ustaz I have question relating to today’s’ topic. Pls what is the maximum profit can one make from a sale in the shariah.
*ANSWER*
Wa alaykum salām Warahmatullāh Wabarakātuh
Alhamdulillāh, there is no limit in the Hukm of the Sharī’a to what percentage of the cost the profit could be. Rather the Sharī’a has left it at whatever the agreement of the buyer and seller arrives at.
In the Qur’ān, Allāh – _ta’ālā_ – said:
: يَا أَيُّهَا الَّذِينَ آمَنُواْ لاَ تَأْكُلُواْ أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ إِلاَّ أَن تَكُونَ تِجَارَةً عَن تَرَاضٍ مِّنكُمْ {النساء:29
*”O you who believe, do not in error and falsehood consume one another’s wealth but engage in willful commerce and trade from the agreement of yourselves.”*
An-Nisā: 29
The management and limiting of prices in the Muslim state is done by three forces:
1. Price regulation from the State.
In our history, the Khalifah may pass an executive order prohibiting the sales of certain goods beyond certain prices. This was done by some Khalifs
2. The Market forces of Demand and Supply.
Imām Ibn AbdilBarr – rahimahullāh – in the Istidhkār recorded that once the illustrous Companion Umar Ibn Al-Khattāb – radiyallāhu an hu – asked that the Muslims reduce their consumption of eggs so that the price of both chickens and eggs fall in the market.
3. The good intent of the seller.
Due to the excellence of _Ihsān_ and doing good as was commanded by Islām, it is expected that the mercy of the seller would make him refrain from exploiting the seller. What was recorded in the Muslim societies was not sellers tipping the scales in their favours. Rather, it was tipping the scales in favour of the buyer. This is the excellence of brotherhood and goodness that the Muslims reached.
We ask Allah to return the Muslims to the days of the Islamic State. Āmīn
Bārakallāhu fīkum
Jazākumullāhu Khayran.
24th Al Muharram 1438.
