“Taxes are the money which a person has to pay to the government, according to the facilities which are provided by the government to him as a citizen of that country.”
To make the Islamic economic order effective, it is necessary for the caliphate to have a treasury lodged in a safe place called “Bait-ul-Maal”. The treasury house, sometimes this term may be used to apply to the entire revenue system.
The central treasury may have its branches in the provinces and districts to serve the needs of the local population under its order. This public treasury receives all the revenues which should be deposited in it according to Islamic perspective. The expenditure for all collective and private needs as determined is also met from here. That’s why the principles of its income and expenditure have been fixed in the Islamic system of government but the details are left to the option of the caliph and his consultative council.
Type of Taxes:
Usher, Khiraj, Jizya, Thamania, Zakat, Charities, Fai, Khums, Daraa-ib, Land contracts, Ushoor, Trusts, and others.
- A large part of annual revenue of the property of Muslims is “Usher”.
- The Quran stipulated that: “Pay up the right of the land at the time of harvest”. The revenue from the lands is “Khiraj”.
- The revenue from the government lands is “Karea-ul-Ard” (rent taken from the peasant”.
- Zakat is fixed annual tax on cash held by its own owner.
- Trade commodities and domestic animals, while the undefined is ‘sadaqat’ or charities.
- The annual tax levied on the zimmis is “Jizya”
- Fai is the spoils taken without engaging in battle, but, if taken during or after the battle the term is ‘Khums’, applicable also to minerals and other hidden wealth.
- Import and export duty n business owned by Muslims and non-Muslims is ‘Ushoor’.
- Taxes realized for social welfare and transitory requirements are ‘Daraaib’.
- Income from government owned minerals and miscellaneous source is ‘Amwaal-e-fadila’ and from trust is ‘Amwal-e-Waqf ’.
- Income from these sources is the property of the public treasury to be spent on items mentioned above, and, therefore, an important part of the Islamic Socio economic system.