National Shari'a Board - Indonesian Council of Ulama Fatwa No. 16 of 2000 on Murabahah Discounts

This fatwa acknowledges that one of the basic principles of a murabahah agreement is the sale of an item to a purchaser at a purchase price and cost that incurs an additional agreed-upon profit for the vendor. The fatwa notes that a vendor (shari'a financial institute) will sometimes obtain a discount from the supplier, and that that discount can be problematic insofar as it is unclear whether or not it is the right of the shari'a financial institute to sell the item to the customer at the pre-discount or post-discount price.

The fatwa clarifies that if the shari'a financial institute obtains a discount from the relevnat supplier, the actual price is the price after the discount has been factored in, rendering the discount the right of the customer. If, however, the discount is obtained after the parties have reached an agreement, the terms of the agreement stand.

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