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´O Believers!

When you deal with each other, in transactions involving future obligations in a fixed period of time, reduced them to writing; Let a scribe write down faithfully as between the parties; Let not the scribe refused to (Al-Baqra-282) write; as God Has taught him,so let him write.µ
(Al-Baqra-282)

(Al-Baqra(Al-Baqra-282)

(Al-Baqra-282) (Al-Baqra-282) (Al-Baqra-282)

Allah·s Messenger PBUH Said; ´The heaviest thing which will be put on the believer·s scale (on the Day of Resurrection) will be good characterµ.

Topic :
Taxation in Islam

Presented To:Mr. Saleem Siddiqi

Presented by:Bilal Yousaf Sheikh Bilal Mujeeb Farhan Ahmed Class:- BBA 10(5)

CONTENTS
‡ Introduction ‡ The Rationale of Taxation in Islamic Framework ‡ Traditional Sources of Revenue in Islamic State ‡ Ushr ‡ Kheraj ‡ Jizyah ‡ Zakah ‡ Khums ‡ Custom Duty ‡ Islamic Principles of Taxation ‡ Ability to pay ‡ Convenience of the tax payers ‡ No injustice and Oppression ‡ Mutual Consent

DIVISION OF WORK :
‡Introduction & The Rationale of Taxation in an Islamic Framework : Bilal Yousaf ‡Traditional Sources of Revenue in Islamic State: Sheikh Bilal Mujeeb ‡Islamic Principles of Taxation: Farhan Ahmed

Introduction & The Rationale of Taxation in an Islamic Framework
BY : Bilal Yousaf

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Introduction

Introduction :
‡Objective of Tax Structure in Islamic State : Propogation of Islam & Promotion of Islamic way of life. Hazrat Umer Bin Abad Says,
³Allah sent Muhammad (peace be upon him) to invite people to Islam and He did not send him as a tax collector.¶¶

Introduction :
‡ Hallmarks of Taxation in Islam : ‡ Justice in Levy ‡Collection of Taxes Fairly

The Rationale of Taxation In Islamic Framework

The Rationale of Taxation in Islamic Framework
‡ Primary objective of an Islamic State : Propogation of Islam & Promotion of Islamic way of Life ‡ Allah says in Quran :
³These are people who, if we give them power in the land, will established salat, pay the Zakah dues, enjoin what is right and forbid what is evil, and the final decision of all affairs is in the hand of Allah¶¶

The Rationale of Taxation in Islamic Framework
‡ Acc. to Shah Waliullah:
³as the management of the affairs for the completion of the establishment of religion (Deen) «««« in succession to the Prophet (Peace Be Upon Him).¶¶

The Rationale of Taxation in Islamic Framework
‡
Influence of Soft Tax Policies over Non-Muslims :
Ziyad Ibn Hadir Al-Asadi reports that Umar Ibn Khattab (R.A.) sent him to Iraq and Syria for the collection of customs duty. There happened to pass by him a man from Banu Tahglib, belonging to Arab Christians and he had with him a horse, which was assessed for tax purpose at the value of twenty thousand dirhams. So Ziyad said to him, ³Give me your horse and take nineteen thousand dirhams from me or keep your horse and pay me one thousand dirhams¶¶

But he opted to pay one thousand dirhams as tax. Then the same Taghlabite passed by him on his return during the same year and Ziyad again asked him to pay one thousand dirhams as tax . Upon that the Tughlabite came back to Ziyad and he had made up his mind to pay one thousand dirhams as tax, but he found the letter of Umar (R.A.) HAD ALREADY REACHED HIM (Ziyad). Its wording was ³whoever passes by you and you have taken the tax from him, so do not take from him anything else up to the same day of the next year except he brings some other commodities.¶¶ Upon this the Taghlabite said, ³By Allah, I had made up my mind to pay you one thousand dirhams as tax, now I bear Allah as witness that I quit Christianity and accept the religion of the person, who wrote you this letter.´

THANKS
That·s All From My Side

Coming Up : Sheikh Bilal Mujeeb

Traditional Sources of Revenue in Islamic State
That·s All From My Side

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BY : Sheikh Bilal Mujeeb

Traditional Sources of Revenue In Islamic State

Traditional Sources of Revenue in Islamic State

‡Ushr ‡Kheraj ‡Jizyah ‡Zakah ‡Khums ‡Custom Duty

Ushr
‡ Agriculture Land ‡ 5% Irrigated land ‡ 10% rainfed land

Kheraj
‡ Crop Sharing basis on the land of jaws of kyber ‡ Land of Zimmis on acreage basis

Jizyah
‡ Annual Lump Sum ‡ Levied on Ahl al-Kitab (People of the book) ‡ 48 Dirham on prosperous ‡ 24 Dirham on middle class ‡ 24 Dirham on lower class Zimmis

Zakah
‡ Wealth tax ‡ Spent for purpose specified by Quran

Khums
‡ 20% war booty ‡ State Spend like Zakah process

Custom Duty
‡ 2.5% import and export duties ‡ 5% on Zimmis ‡ 10% on Harbis ‡ Minor sources like Kira el-Ard etc

THANKS
That·s All From My Side

Coming Up : Farhan Ahmed

Islamic Principles of Taxation

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BY : Farhan Ahmed

Islamic Principles of Taxation

Islamic Principles of Taxation:
‡ Ability to pay ‡Convenience of the tax payers ‡No injustice and Oppression ‡Mutual Consent

Ability to Pay
‡Low tax rates ‡ Limits of taxes on land ‡ Warning of Hazrat Umer

Convenience of the tax payers
Islam stresses that, convenience should be the prime consideration while collecting kheraj and other taxes ‡ No burden on payer

No injustice and Oppression
Islam say that there should be no injustice and oppression during the collection of taxes Way of Hazrat Umer No punishment

Mutual Consent
The collection of tax should be done with the consent of the payer and they should be satisfied with the tax they pay ‡ Satisfaction for the collectors

CONCLUSION

THANKS
That·s All From My Side

Coming Up : Query Session

ANY QUESTION ????

Tips to Resolve Stress
·
· · · · · · · · · · · Do your work regularly. Upgrade your knowledge and skill. Manage your time. Honesty in dealing. Think well, have good. Protect your rights. Give other rights. Seek happiness. Right action at right time. Control diet. Take exercise. Sound sleep.