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The Principles and Practices of Shariah in Islamic Finance - page 21 / 49





21 / 49


Mark-up adjustment

27. At the time of concluding a Murabahah contract, both the IFI and purchase orderer may mutually agree to vary the financing tenure and adjust the mark-up that was initially promised in the Wad undertaking.

Illustration 4: Variation in the Original Murabahah Terms

A customer’s order to purchase equipment estimated at RM50,000 for a financing period of 5 years is specified and promised to an IFI. IFI agreed to finance the order at 10% mark-up as per the order. Upon acquisition, the actual price of purchase is RM60,000 and both the customer and IFI renegotiate the term and mutually agree that IFI will finance through Murabahah at 10% for a period of 6 years to enable the customer to meet regular instalment

payments of RM11,000 per year.

  • 28.

    The acquisition cost, which forms the cost portion of the Murabahah price may include direct expenses which refer to costs incurred to enable the acquisition of goods by the IFI and delivery of the goods to the customer. This includes expenses such as transportation, storage, assembly, taxes, insurance or Takaful or any valid expenses established by customary practice.

  • 29.

    Indirect expenses such as staff wages, labour charges, which are not part of the cost of acquisition, shall not be included in the acquisition cost.

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