{"id":22330,"date":"2020-10-17T10:52:27","date_gmt":"2020-10-17T07:22:27","guid":{"rendered":"https:\/\/roshd.com\/?p=22330"},"modified":"2024-11-21T18:19:44","modified_gmt":"2024-11-21T14:49:44","slug":"profit-in-transactions-limited-or-unlimited","status":"publish","type":"post","link":"https:\/\/roshd.com\/en\/profit-in-transactions-limited-or-unlimited\/","title":{"rendered":"Profit in Transactions: Limited or Unlimited?"},"content":{"rendered":"\t\t
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\u201cIf a believer sells something to another and seeks a profit from it, they should take only enough profit to sustain their livelihood, or they may purchase goods for resale and earn a modest profit from them.\u201d
(Imam Reza, peace be upon him) [1].<\/p>\n

According to Islamic principles, trade and commerce are inherently permissible. Those who, through effort and time, provide goods to consumers are assisting them and are thus entitled to fair compensation or profit. However, such profits must remain limited and operate within the boundaries of justice and fairness. Social and economic fluctuations should not lead to excessive profits in commercial transactions or allow a corrupt and exploitative intermediary system to thrive. Such systems can take advantage of economic hardships to amass large profits, leaving consumers empty-handed under the pretext of the \u201clegitimacy of profit in transactions.\u201d<\/p>\n

While Islam does not explicitly define a specific limit on profits, its teachings emphasize that unchecked and unrestricted economic practices lead to societal corruption and economic downfall.<\/p>\n

In capitalist economies, profit is the ultimate goal and principle, with the flow of goods serving as a means to maximize profits. The nature of the capitalist system revolves around increasing profits and expanding wealth. In contrast, Islam\u2019s primary objective is the equitable distribution of goods, meeting the needs of society, and safeguarding public welfare. The core intent of Islamic principles is to eliminate profits based on artificial price manipulation. Legitimate profit is derived from the true market value of exchanged goods, which is achieved by preventing artificially created scarcity\u2014a tactic used by hoarding capitalists and merchants to control supply and demand[2].<\/p>\n

The narration mentioned at the beginning provides the essential standard established by Imam Reza (peace be upon him). According to his guidance, commercial profits should be limited and should not grow disproportionately. The meaning of \u201cmodest profit,\u201d as understood from other narrations, implies that both the buyer\u2019s and seller\u2019s circumstances should be considered. In the words of another narration, \u201ctransactions should be straightforward, fair, and conducted at rates that neither exploit the buyer nor oppress the seller[3].\u201d<\/p>\n

This teaching of Imam Reza (peace be upon him) is rooted in the Qur\u2019an. Regarding commercial profits, the Qur\u2019an states:
\u201cDo not consume one another\u2019s wealth unjustly, but only [in lawful] trade by mutual consent among you.\u201d[4]<\/p>\n

This verse emphasizes the mutual satisfaction of the buyer and seller. When overpricing or charging exorbitant profits occurs, the buyer’s consent is absent. Conversely, profits so low as to exploit the seller would also lack the seller\u2019s satisfaction.<\/p>\n

(Excerpt adapted from the book \u201cImam Reza: Life and Economy\u201d by Muhammad Hakimi, with slight modifications.)<\/p>\n

Islamic – Shia Website: Roshd<\/a><\/p>\n

Footnotes:<\/strong>
[1] Fiqh al-Reza, p. 251.
[2] Derived from Al-Islam Yaqood al-Hayat by Martyr Sayyid Muhammad Baqir al-Sadr.
[3] Nahj al-Balagha, Letter from Imam Ali (peace be upon him) to Malik al-Ashtar.
[4] Qur\u2019an, Surah An-Nisa, verse 29.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

\u201cIf a believer sells something to another and seeks a profit from it, they should take only enough profit to sustain their livelihood, or they may purchase goods for resale and earn a modest profit from them.\u201d(Imam Reza, peace be upon him) [1]. According to Islamic principles, trade and commerce are inherently permissible. Those who, […]<\/p>\n","protected":false},"author":9,"featured_media":36322,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64401],"tags":[],"class_list":["post-22330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-imam-reza-pbuh"],"yoast_head":"\nProfit in Transactions: Limited or Unlimited? - Roshd<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/roshd.com\/en\/profit-in-transactions-limited-or-unlimited\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Profit in Transactions: Limited or Unlimited? - Roshd\" \/>\n<meta property=\"og:description\" content=\"\u201cIf a believer sells something to another and seeks a profit from it, they should take only enough profit to sustain their livelihood, or they may purchase goods for resale and earn a modest profit from them.\u201d(Imam Reza, peace be upon him) [1]. 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