Sources of an Islamic State
1) Introduction
There are different sources of Islamic revenue such as Zakat, Ushar, Khiraaj, jizya, and khums Zakat is a pillar of the Islamic revenue system and it is an annual tax upon yearly saving of one person's order for giving zakat is repeated in the Holy Quran. Zakat helps to remove poverty from the community and it is the major economic source for establishing financial justice Ushar is also a form of tax that is imposed on the lands of Muslims of the community and it is an annual tax which means one-tenth Khiraj is also a form of usher but it is being imposed upon non-Muslims land within the state Jizya is an annual personal tax which is imposed upon Non-Muslims of the state against their protection within the state As well as there are a lot of taxes which have been imposed on the members of the Muslim and non-Muslim communities and these all are major sources of an Islamic state
2) Sources of Revenue
Following are five sources of an Islamic state
- 1. Giving Zakat
- 2. Ushar
- 3. Khiraj
- 4. Paying Jizya
- 5. Khums
1) What is Zakat
Zakat is a tax imposed on Muhammadans alone and it is a Yearly
payment that is an obligatory act of worship
i. Meaning
Zakat means GROWTH or PURIFICATION
ii. Importance of Zakat
Zakat is a right of Allah and every Muslim must give zakat to those who are poor. Several verses in the Holy Quran for order to pay the Zakat which is 2.5 % of yearly savings of wealth
Quran Says:
“SO ESTABLISH WORSHIP, PAY THE POOR DUE AND HOLD FAST TO ALLAH”
iii. Upon whom Zakat levied
According to Muslim jurists, it is obligatory for every Muslim who is Free,Sane, adult and owns wealth equal to the prescribed Nisab
iv. Persons entitled to Zakat
- 1) The poor and needy
- 2) To those who cannot meet their basic needs
- 3) To Zakat collectors
- 4) To those who converted Islam recently
- 5) Those who are in debt
- 6) To traveller
- 7) In the way of Allah
- 8) To free from the slavery
v. Nisab of Zakat
The nisab of Zakat is 7.5 tolas Gold and 52 tolas Silvers If someone have such a thing he
is liable to give zakat
vi. Rate of Zakat
The rate of Zakat is 2.5 % of yearly savings
vii. Realization of Zakat
Zakat was realized by Hazrat Abu Bakar Siddique (R.A)
2) Ushar
Usher means “One-tenth” and this is the Tax on all lands of the Muslims of the country
i. Rate of Ushar
Upon naturally irrigated land is 1/10 % e.g by rains, floods, etc
Upon artificially irrigated land is 1/20 e.g by Wells, canals, etc
3) Khiraj
Khiraj is the tax on the production of land of all Non-Muslims that Land which has been
conquered by Muslims after fighting
I. Rate of khiraj
The rate of Khiraj varies with the kinds of crops grown on land
It never exceeds half of the value of production
II. Exemption from Khiraj
If land gets destroyed by flood or fire in this case khiraj is exempted for that year Exception
If the land gets destroyed by the negligence of the owner in this case khiraj is not exempted for that yea
4) Jizya
Jizya is an annual personal tax which has been imposed upon Non-Muslims of the state upon those Who have fought against Islam or can participate in a war against Islamic state
a) Upon whom jizya imposed
Jizya is imposed on those who have following of the three characteristics
- 1. Must be a Male Person
- 2. Must be free
- 3. Must be a Major
b) Persons exempted from Jizya
Following are the people who were exempted from Jizya
- Religious personality
- Women
- Slave
- Minor
- Disables
- Non-muslims giving military services
c) Mode of imposing Jizya,
Following are the two modes of imposing jizya
- Under an agreement in which its amount is to be determined by the parties
- Under an agreement in which its amount is to be determined according to the income of each individual
d) Amount of Jizya
The amount for jizya is not fixed because it varies from time to time
e) According to Abu Hanifah
The jizya ranges are between 12 Dhirham,24 dirhams, and 48 dirhams
- Poor can’t pay less than 12 dirhams
- Rich can’t pay more than 48 dirhams
- Moderate person will have to pay 24 dirhams
f) Mode of paying Jizya
Jizya can be paid in the mode of currency
It also can be paid other than currency such as garments etc.
g) Jizya at the present time
Jizya disappeared at present time after the revolution in Turkey since when
Christian also does military service
5) Khums
Khums consist of 1/5 of the property and it is being collected even from Muslims or Non- Muslim of the state but It is taken only once
i. Trade Tax
It is levied upon all and collected from Muslim and Non-Muslims tradesmen
Its rate is fixed for all and it is taken once
3) Objectives of Revenue
Following are the objectives of revenue in an Islamic state
- Protecting the society from crimes by paying the poor’s
- Equal distribution of wealth among all
- Peace and prosperity among the people of the state
- Social and financial development of society
4) Modern Sources of Revenue
Following are some modern sources of Revenue in an Islamic State
- 1. Income Tax
- 2. Sales Tax
- 3. Property Tax
- 4. Wealth Tax
- 5. Custom and excise duty
- 6. Court fee
5) Conclusion
Paying taxes makes the individuals responsible and caring persons. Such kind of revenue in the shape of money or other made the financial position of the country strong. It is very cleared and proven that the System of Zakat plays an effective and successful role in developing the social life and moral values of Muslim society. Other sadaqat which are not compulsory,they also play a pivotal role in supporting the poor people in the society