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It is permissible to pay Zakat al-Fitr in cash if that is more beneficial to the recipient. There is no doubt that peopleโs need for money is greater than that for food during the current economic situation.
Giving Zakat al-Fitr in cash is a view that dates back to the early generations, as has been narrated by Abu Is-แธฅฤq al-Subฤโi, one of the most knowledgeable of the Tabi’een (those who succeeded the Companions), who said, โI came in contact with them giving Zakat in cash instead of food.โ And al-Bukhari included a chapter in his Saheeh entitled โZakat Paid in Kind,โ in which Tฤwoos related that Muโฤdh (may Allah be pleased with him) said to the people of Yemen, โBring me charity in kind: clothing instead of barley and grain. It will be easier for you and better for the Prophetโs Companions in Madinah.โ This proves the permissibility of distributing (Zakat) based on its value. This was also applied by the rightly-guided caliph โUmar b. โAbd al-โAzeez, because he would instruct his governors to collect it in cash.
This is also the view of the Hanafis, and it was the opinion of Shaykh al-Islฤm Ibn Taymiyyah, of the Hanbalis, so long as it is more beneficial for the needy.