All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon Prophet Mohammad and upon all his family and companions.
The zakat on olives is obligatory according to one opinion among the Shafi'i scholars and the Hanafi Madhab. If the olives are watered by natural means, then the zakat is one-tenth (10%), but if they are irrigated with a financial cost, then the zakat is half of one-tenth (5%). This is based on the verse from the Quran (which means): {And give its due on the day of its harvest} [Al-An'am, 141]. The minimum amount for zakat on olives is five Wasqs, which is approximately 611 kilograms, as supported by the hadith: "There is no zakat on what is less than five Wasqs" [Al-Bukhari].
In principle, the zakat should be given from the same produce. If someone gives zakat from the actual olives, their obligation is fulfilled, as agreed upon, because the poor person then owns what Allah has made obligatory from the rich person's wealth. Zakat is related to the wealth in a way similar to partnership; hence, the poor person becomes a partner in the wealth of the rich.
Imam Al-Khatib Al-Shirbini Al-Shafi'i said: "Zakat is related to the wealth in the way of a partnership, according to the apparent evidence; because it is obligatory in terms of the quality of the wealth, whether good or bad" [Mughni al-Muhtaj, Vol.2/P.137].
The Shafi'i scholars permit giving zakat from sources other than the specific produce, to ease the burden on the zakat payer. Imam al-Khatib al-Shirbini (May Allah have mercy on him) stated: "It is permissible to give zakat from something other than the exact produce, contrary to the general rule, to ease the burden on the owner and expand their options, as zakat is obligatory for the purpose of mutual assistance" [Mughni al-Muhtaj, Vol. 2/P. 137].
However, the zakat payer must ensure that the quality of the old oil is comparable to the new oil in terms of quality and impurity. The key consideration is the quality and impurity of the oil. As mentioned in [Mughni Al-Muhtaj]: "Zakat is due based on the quality of the wealth, whether good or bad." The standard of quality and impurity is determined by experts, primarily based on the acidity level of the oil. According to Shafi'i jurisprudence, age alone does not constitute a defect. Imam al-Shafi'i explained regarding the zakat Al-Fitr: "If someone gives from old food that has not changed in taste, even though its value is less than that of new food, it is acceptable; because age alone is not considered a defect" [Al-Bayan Fi Madhab Al-Imam Al-Shafi'I, Vol. 3/P. 377].
The Hanafi scholars permit giving the value of the zakat instead of the actual produce. If one wishes to pay zakat on current oil with another type of wealth, such as money or other forms of assets, they should determine what amount of that other wealth is equivalent to the value of the oil they currently have. According to [Durar Al-Hukam Sharh Gurar Al-Ahkam, Vol. 1/P. 178]: "It is permissible to give the value (qeemah) in zakat."
If one intends to pay zakat using the same type and category of produce, such as olive oil, then the quality of the oil is not considered. Old oil can be used in place of new oil, even if their values differ, as long as the quantity is equal. This view is supported by Abu Hanifa and Abu Yusuf. However, Imam Muhammad ibn al-Hasan holds that it is necessary to give the additional value, which is the difference in value between the provided oil and the required zakat. According to Ibn Mazah al-Hanafi: "If the zakat is measured or weighed, and one gives a superior quality from the same type but less than the required amount in measurement... it is not acceptable unless it meets the required measurement. If the provided amount is equal to the required amount but is of inferior quality, the additional value (the difference between the inferior and superior quality) is required according to Abu Hanifa and Abu Yusuf, while Muhammad requires the additional value to be given" [Al-Muheet Al-Burhani Fi Al-Fiqh Al-Nu'mani, Vol. 2/P.245].
In conclusion, the general principle is that the zakat should be paid from the same type of produce. This method is the most complete and clears the responsibility of the payer, as using oil from a previous year's harvest might suggest an attempt to deceive the poor by providing oil of lower value than what they deserve. It also benefits the payer personally by allowing them to keep the higher-value produce, which might be seen as an attempt to maximize profit and could be perceived as stinginess.
However, if the payer uses old oil in place of new oil, it is acceptable as long as the quality of the old oil is equivalent to that of the new oil. This equivalence in quality should be assessed by experts. If the old oil is not equivalent in quality or is of better quality, according to Hanafi opinion, it is valid to pay the zakat with the old oil in the same quantity, even if it is of lower quality, provided that the difference in value between the two oils is given to the poor, based on the view of Muhammad ibn al-Hasan, which is the more cautious approach. And Allah The Almighty Knows Best.
