Public Finance Final

8/9/2019 Public Finance Final

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O Believers! When you deal with each other,in transactions involving future obligations

in a fixed period of time, reduced themto writing; Let a scribe write down

faithfully as between the parties;

Let not the scribe refused to

write; as God Has taughthim,so let him write.

(Al-Baqra-282)

(Al-Baqra-282)

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

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


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Allahs Messenger PBUHSaid;

The heaviest thing which willbe put on the believers scale (on

the Day of Resurrection) will begood character.


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Topic :

Taxation in Islam


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Mr. Saleem Siddiqi

Presented To:-


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Presented by:-Bilal Yousaf

Sheikh Bilal Mujeeb

Farhan Ahmed

Class:- BBA 10(5)


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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


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DIVISION OF WORK :

Introduction & The Rationale of Taxation in anIslamic Framework :

Bilal Yousaf

Traditional Sources of Revenue in Islamic State:

Sheikh Bilal Mujeeb

Islamic Principles of Taxation:Farhan Ahmed


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jIntroduction & TheRationale of Taxation in

an Islamic Framework

BY : Bilal Yousaf


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Introduction


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Objective of Tax Structure in Islamic State :

Propogation of Islam & Promotion of

Islamic way of life.

Hazrat Umer Bin Abad Says,

Allah sent Muhammad (peace be upon him)to invite people to Islam and He did not send

him as a tax collector.

Introduction :


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Introduction :

Hallmarks of Taxation in Islam :

Justice in Levy

Collection of Taxes Fairly


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The RationaleofTaxationIn Islamic Framework


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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 :

These 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


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Islamic Framework

Acc. to Shah Waliullah:as the management of the affairs for the completion of

the establishment of religion (Deen) in

succession to the Prophet (Peace Be Upon Him).


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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. Therehappened 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,

Give me your horse and take nineteen thousand dirhams from meor keep your horse and pay me one thousand dirhams


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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 Ziyadagain 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

whoever passes by you and you have taken the tax from him, so donot take from him anything else up to the same day of the next yearexcept he brings some other commodities.

Upon this the Taghlabite said,

By Allah, I had made up my mind to pay you one thousand dirhamsas tax, now I bear Allah as witness that I quit Christianity and acceptthe religion of the person, who wrote you this letter.


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THANKS

Coming Up : Sheikh Bilal Mujeeb

Thats All From My Side


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jTraditional Sources ofRevenue in Islamic State

BY : Sheikh Bilal Mujeeb


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Traditional Sources ofRevenue

In Islamic State


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Ushr

KherajJizyahZakah

KhumsCustom Duty

Traditional Sources of Revenue

in Islamic State


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Ushr Agriculture Land

5% Irrigated land

10% rainfed land


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Kheraj Crop Sharing basis on the land of jaws of

kyber

Land of Zimmis on acreage basis


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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


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Zakah Wealth tax

Spent for purpose specified by Quran


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Khums 20% war booty

State Spend like Zakah process


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Custom Duty 2.5% import and export duties

5% on Zimmis

10% on Harbis

Minor sources like Kira el-Ard etc


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THANKS

Coming Up : Farhan Ahmed



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jIslamic Principles ofTaxation

BY : Farhan Ahmed


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Islamic Principles of

Taxation


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Islamic Principles of Taxation:

Ability to pay

Convenience of the tax payersNo injustice and Oppression

Mutual Consent


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Low tax rates

Limits of taxes on land

Warning of Hazrat Umer

Ability to Pay


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Convenience of the tax payersIslam stresses that, convenience should be

the prime consideration while collecting

kheraj and other taxes

No burden on payer


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No injustice and OppressionIslam say that there should be no injustice

and oppression during the collection of

taxes

Way of Hazrat Umer

No punishment


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Mutual ConsentThe 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


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CONCLUSION


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THANKS

Coming Up : Query Session



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ANY

QUESTION

????


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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.

Tips to Resolve Stress


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