Credit sale and specifying the rate of profit

Q 1: Is there a set rate of profit in business or not? Also, take into consideration the high amount of taxes business owners pay each year.

A: It is permissible for a person who sells a product for profit whether immediate or deferred to sell it at a higher price. We do not know of any limit on profit but one should be moderate, as there are reports (Part No. 13; Page No. 90) which encourage that. However, if the product is known locally to be of a certain price, a Muslim should not sell it for more to one who is unaware of that without telling him of this fact. Inflating prices is a kind of deceit. A Muslim is a brother of his fellow-Muslim, thus he should not wrong him, abandon him, cheat him, or betray him, rather he should advise him sincerely wherever he is. The Prophet (peace be upon him) stated: "Religion is dependent on advising one another." The Hadith related by Muslim in his Sahih. And in the Two Sahih (authentic) Books of Hadith (i.e. Al-Bukhari and Muslim) on the authority of Jarir ibn `Abdullah Al-Yamany that he said: "I gave my Bay`ah (pledge of allegiance) to the Prophet (peace be upon him) to establish Salah (Prayer), pay Zakah (obligatory charity), and be sincere towards every Muslim."