Adjusting tax structure to accommodate zakah

المؤلف

Awad, Muhammad Hashim

المصدر

Management of Zakah in Modern Muslim Society

الناشر

البنك الإسلامي للتنمية المعهد الإسلامي للبحوث و التدريب

تاريخ النشر

2000-12-31

دولة النشر

السعودية

عدد الصفحات

20

التخصصات الرئيسية

الاقتصاد و التجارة
الدراسات الإسلامية

الملخص الإنجليزي

The paper advocates a Zakah-based tax structure.

It stresses the need for a through restructuring of the tax system of an Islamic state, following the introduction of an institutionalized program of Zakah collection and distribution.

"The purpose of this restructuring is not simply to remove any overlapping between Zakah and other taxes, it is intended to ensure harmony in all respects between Zakah and other taxes so that Zakah becomes the core of the system, and the tax structure a mere extension of this religious level as Zakah is seen - an instrument for stimulating growth stabilizing the economy and promoting social cohesion.

The paper argues that these recognized goals of fiscal policy should either be given explicit expression by Zakah or be found to be fully compatible with it.

It is also statistically demonstrated that Zakah yields can be quite significant in relation to GNP.

Zakah has an expansionary effect on the economy in that it encourages investment, since its main target is hoarded wealth.

On the other hand, it is shown that Zakah is not regressive in nature, but that it simply reaches the grass roots of the nation's resources.

In all, Zakah is "essentially a built in (automatic) stabilizer in the economy", responding flexibly to economic fluctuations.

Furthermore, it is conceivable for a government to further Zakah revenues.

Finally, guidelines for tax structuring are outlined.

Zakah may be supplemented by other levies recognized by Islam such as khums, ushr, kharaj, and wazifas, in order to meet the basic welfare needs of Muslims.

It is also argued that tax-restructuring in the wake of introducing Zakah may entail the impositions of some direct taxes such as taxes on visible hoarding, windfall gains and monopoly profits.

No less important is the change that must occur in indirect faxes which tend to be regressive in nature.

In sum, this-tax restructuring "will combine what is permanent in the fax systems of the early Muslim states with what is useful and Islamically acceptable as the elements of modern fiscal systems".

A case study of the Sudan is also annexed to the paper.

لغة النص

الإنجليزية

• APA
• MLA
• AMA

نوع البيانات

فصل كتاب

الملاحظات

Papers Presented to the first Seminar on Management of Zakah in Modern Muslim Society in Karachi, Pakistan during 02-12 Sha'aban 1405 H ( 22 April - 02 May 1985 ).

رقم السجل

BIM-777810