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    Wednesday, 2 July 2014

    Source of Revenue of an Islamic State

    1.Introducation
    The Islamic state is a tax free state, but in order to meet the expenditures of state machinery some taxes are levied of the excess wealth of the people for the welfare of the state and the community. 
    And in their wealth there is a right of him, who asked him and who was (for some reason) prevented from wealth.”

    2.Source of Revenue

    Various source of revenue of Islamic state discussed by Muslim wirters fall into two categories:
    i. A sort of religious revenue from the Muslims alone.
    ii. A sort of secular revenue collected primarily from non-Muslims.
    The detail is as under:

    (i) Zakat

    It is a tax imposed on Muslims alone and the payment of it is regarded as obligatory act. It may be realized by the state by enforcement of state machinery or measures as it was done by Hazrat Abu Bakar (R.A). But now a days it is left to the religious sense of each Muslim whether to pay Zakat or not.
    It is levied on man’s property exclusive of land property such a Gold, Silver, Cattle, Goods of Mercantile, provided it reaches to a certain nisab.
    Nisab”
    The Nisab is 2.50% of property falling in nisab. Examples or limits of porperty falling in nisab are.
    Gold”
    3/10 ounce of 7-1/2 totals.
    Silver”
    21 ounce or 52-1/2 Totals.
    “Camels”
    One goat is to be levied on every fie camels.
    Goat”
    On 40 goats one goat as Zakat.

    (ii) Ushr

    Ushr is derived from an Arabic word which means Ten (10).
    Ushr is 1/10th of the agriculture produce from the land of a Muslim.i.e
    •         1/10th on naturally irrigated land e.g by rain, flood water; 
    •                     1/20th on Artificially irrigated land e.g. by canals, wells.

    (iii) Khiraj

    It is generally levied on the land of non-Muslims i.e. on such land which after conquest were allowed to remain in the hands of original owners.
    (a)  Proportional Khiraj
    (b) Fixed Khiraj

    (a) Proportional Khiraj
    It is levied with a certain portions to the produce of land.

    (b) Fixed Khiraj
    Fixed Kiraj is levied as a fixed rate on per unit area; and is fixed according to the tax bearing capacity of each individual.
    In any case fixed Kiraj should not exceed one half of the produce, and if the entire crop is destroyed by unforseable natural consequences, the Kiraj cases to be payable that year”.

    (iv) Khums

     Literal meaning of Khums is five (5) in Arabic, it is 15th taken as a tax.

    (v) Jazya

    Jazya is the tax levied on non-Muslim Zimmis who surrender themselves to a Muslim state for portection of their land, person, property and administration of their religious law.

    (vi) Rukaz

    It is recoverable on the assets obtained accidentally through mines, or hidden assests.

    (vii) Fai

    Wealth obtained from belligerent state without war.

    (viii) Wakf

    Wakf is the donation of the property in favour of the Government for the welfare of the society.

    (ix) Luqta

    Luqta means unclamied property to which there is no claimant, such properties remain with the Government till the discovery of the real owner.

    (x) Assets without Owner

    State is the owner of the properties to which there is no Quranic sharer of residuary.

    (xi) Grooming Assets

    State takes the income of fruit trees, shrubs groomed on the state land, it also includes the forests and cattle farming. 

    (xii) Business Profits

    The state can conduct any kind of business permissible under Islam. The profits fo such business is a food source of income or revenue in Islam.

    (xiii) ARZ-Anwal

    The land of captured area and their income is also a source of revenue.

    (xiv) Sadqat

    The waqf of a property of non-payment nature.

    (xv) Modern Source

    Wealth tax, Income Tax, Property Tax, custom Duty, Import/Export Duty, Sales Tax, Registration fees, etc.

    Conclusion

    All the above sources are collected and are deposited in the Central Treasury and are mainly spent on poor and needy people, for providing basic facilities to community, for defence of Islamic state and administration.




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