Earning more than 10% profit

Reference: Fataawa al-Lajnah ad-Daa.imah lil-Buhooth al-‘Ilmiyyah wal-Iftaa., – Volume 13, Page 92, Question 4 of Fatwa No.7339

Question: Is it permissible for a merchant to earn more than 10% profit on [the sale of his] goods?

Response: How much the merchant earns is not legislated for in the Sharee’ah, however, it is not permissible for a Muslim to deceive those who buy from him, such that he sells at a price unknown (different from the going rate) in the market. It has [however] been legislated that the Muslim should not be excessive in his profits, rather he should be easy-going if he sells and if he buys, as the Prophet (sal-Allaahu ‘alayhi wa sallam) has encouraged [an] easy-going [approach] in dealings [with one another].

And with Allaah lies all success and may Allaah send prayers and salutations upon our Prophet (sal-Allaahu ‘alayhi wa sallam) and his family and his companions.

- from London, UK. He is a graduate of the Islaamic University of Madeenah, having graduated from the Institute of Arabic Language, and later the Faculty of Sharee'ah in 2004.

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