FatwaFederal TerritoriesTransactions & Finance
AL-KAFI #964 : UNTUNG BERLIPAT GANDA: ADAKAH ITU RIBA?
What is the permitted profit margin for a seller in Islam, and when is profit considered riba?
Short answer
In principle, Islam sets no specific limit on profit. Where there is deception, injustice or excessively high prices for necessities, fiqh gives the deceived party the right of khiyar, and acts such as intercepting traders and hoarding (ihtikar) are prohibited.
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Federal Territories Mufti Office
- Date
- Status
- Opinion (irsyad)
- Series
- Al-Kafi li al-Fatawi
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
In principle, Islam sets no specific limit on profit. Where there is deception, injustice or excessively high prices for necessities, fiqh gives the deceived party the right of khiyar, and acts such as intercepting traders and hoarding (ihtikar) are prohibited. According to the final view of the school, it is prohibited for the ruler to fix prices, while the view allowing it during times of scarcity for food is the weak opinion. Shaykh Muhammad Taqi Uthmani separately states that price fixing is only permissible in extraordinary situations when people are in distress due to excessively high prices.
Written in our own words from the original fatwa — check the source before acting on it.
Pada asalnya, tiada had khusus bagi keuntungan dalam Islam.
Read the full fatwa on the Federal Territories website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Federal Territories Mufti Office. “AL-KAFI #964 : UNTUNG BERLIPAT GANDA: ADAKAH ITU RIBA?”, 18 December 2018. https://muftiwp.gov.my/ms/artikel/al-kafi-li-al-fatawi/2887-al-kafi-964-untung-berlipat-ganda-adakah-itu-riba. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/profit-limit-for-sellers-in-islam-riba/