Principles Of Taxation In Islam

The article discusses “Principles of taxation in Islam. Importance of taxation in Islam. Principles Of Taxation In Islam. Income tax in Islam.Principles Of Taxation In Islam. Principles Of Taxation In Islam. Principles of taxation in Islam.”

Principles Of Taxation In Islam

An Islamic state has to perform various social and economic activities in order to run the government. For this, huge resources are required which cannot be obtained only through Zakah and Ushur. So, some Muslim scholars and jurists in view of the demand of the time and obtained some principles for tax collection from the teachings of Holy Quran and Sunnah. In Islamic state, tax will only be collected when it is needed.

principles of taxation in islam

Some of the Islamic principles for tax collection are given below.

Least Burden

In Islamic society, while taxation, the person’s taxable capacity should not be considered but instead the tax rate should be considered and tax should be levied as minimum as possible.

For example; if a person is able to pay 10% tax of his property but the government need can be fulfilled by collecting 5% tax, then the person should be taxed at the rate of five percent for his whole property.

Wisdom Behind Prohibition Of Interest Riba in Islam


In Islamic economic system, taxation must be done by keeping in view the criteria of ‘‘ability to pay.’’

For example; if there are two persons, who have the same level of income but one person is living alone and the other person has a family with five members. In such case the second person, person with family, will pay less tax as compared to the first person, person living alone. This is because the person with family has more responsibilities as compared to the other person.

Therefore, while taxing the public, all the important aspects of the person’s life like social responsibilities, nature of job and size of family should be considered.

Social And Economic Effects Of Zakat


Another most important principle of the Islamic taxation system is convenience. According to this rule, tax should be collected at the time when it is easy for the people to pay.

For example; tax people when they acquired their income. Same is the principle for Ushur, which is payable at the time of harvesting of crops.

The tax payment may be differed, if there is no chance of serious loss to the state.

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Mutual Consent And Satisfaction

Assessment of tax should be made with the consent of tax payer, that is, how much he can pay easily. Relaxation to the tax payer should be given up to the maximum extent.


Any type of injustice in tax collection is not allowed. If the tax payment is delayed or not paid due to some genuine reason then no punishment or torture will be given to tax payer. Furthermore his property will not be auctioned to collect tax amount.

Maximum Benevolence

The money of tax in the hand of state is regarded as trust. It should be purely spended for the benefit and welfare of the state people. Any type of corruption, misuse and disallocation should not be done in its use.

Final Statement

The above mentioned principles show that taxation in Islamic Economic System stresses on the presence of mutual consent between the state and its objects during the tax collection process. Unlike Western system, in Islamic taxing system, government asks for financial help from its subjects, who then responded in the form of tax,that they pay according to their economic conditions.

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