What are the traditional sources of revenue of an Islamic state?

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Revenue

Q. What are the sources of revenue of an Islamic state? (1998, 1999, 2001, 2003, 2004/A, 2004/S, 2005/A, 2006/A, 2006/S, 2007/A)
Q. What are the traditional sources of revenue of an Islamic state? (1996, 2001, 2002, 2002/S)
1. Introduction
The conception of state in Islam is that of commonwealth of all the Muslims living as one community under the leadership of one caliph who is trustee which of public property, which consist first of all of revenues which collected from the various sources.
2. Sources of revenue
The revenues are derived from the following principal sources.
(i) Zakat
(ii) Usher
(iii) Khiraj (Land Tax)
(iv) Jizya (Poll Tax)
(v) Khums
(I) Zakat (Poor rate)
Zakat is a tax imposed on the muhammadans alone and the payment of it is an obligatory act of worship.
(i) Meaning
Zakat means growth or development or purification.
(ii) Importance of Zakat
Zakat is a right of Allah and a corresponding duty of every Muslim. It is the third important fundamental of Islam. There are quite a number of verses in Holy Quran in which the order to pay Zakat immediately follows the order to offer the prayers.
Quran says:
“So establish worship, pay the poor-due and hold fast to Allah.” (Al-Hajj; 78)
(iii) On whom Zakat levied
According to Muslim jurists it is obligatory upon every Muslim, who is free, baligh, sane and who owns wealth equal to the prescribed Scale (Nisab) Through a complete ownership.
(iv) Nisab of Zakat
The Nasib of Zakat is 7-1/2 tolas Gold or, 52-1/2 tolas silvers.
(v) Rate of Zakat
The Zakat is leived at the rate of 2.5 percent in all years savings.
(vi) Persons entitled to Zakat
The verse 60 of Surah Taubah provides that a Zakat should be spend on:
(a) The poor and the needy
(b) Those who are liable to administer the funds of the alms.
(c) Those whose hearts have been recently reconciled to the truth.
(d) Those who are in bondage and in debt.
(e) The wayfarers.
(f) In the cause of Allah.
(g) To free the captives.
(vii) Realization of Zakat
Zakat may be realize by the state by enforcement of disciplinary measure as it was done in the time of Hazrat Abu Bakar(R.A). But now a days it left to the religious sect of each Muslim.
(II) Ushad
Usher means “on tenth”. All lands of a country, the inhabitants of which have accepted Islam, are liable to pay usher.
( i) Levying or rate of Ushar
Usher is levied upon the produce of naturally irrigated land at the rate of 1/10th percent e. g. by floods, rains etc. and 1/20 on artificially irrigated land e. g. wells, canals etc.
(III) Khiraj (Land Tax)
Khiraj is a tax on the produce of land non-Muslim. All land, which has been conquered after resistance or which is surrendered to the Muslims and allowed remain in the hands of its inhabitants is liable to the payment of Khiraj, subject to certain conditions.
( i) Rates
The rates of Khiraj very with the kinds of crops grown on the land and its productive powers. It is not, however to exceed half of the value of its average produce.
(ii) Exemption from Khiraj
If the produce of the Khiraji land is destroyed by floods or drought or blight, the revenue ceases to be payable for that year.
Exception:
If the produce of the Khiraji is destroyed by advance of the owner, then the Khiraj would not ceased.
(IV) Jizya (Poll Tax)
It is an annual personal tax levied on non-Muslims who had actually fought against Islam or who are able-bodied to participate in a war against an Islamic state.
(i ) Imposition of Jizay
The jurists agreed that it is imposed on those who exhibit three characteristics.
(a) He must be a male person.
(b) He must be a major i. e. attainment of puberty.
(c) He must be free.
(ii) Persons exempted from Jizya
Following persons are exempted from jizya.
(a) Women
(b) Minors
(c) Slaves
(d) Infirm or disable
(e) Monks and ascetics
(f) Non-Muslim giving military service.
(iii) Mode of imposing Jizya
Jizya is imposed either:
(a) Under a traty in which case its amount is to be determined by agreement of the parties, or
(b) After Conquest in lieu of the imam confirming them in possession of their country, in which case its amount is to be determined according to certain rates, which are fixed having regard to the means and income of each individual.
(iv) Amount of Jiyaz
The amount of Jizay is not uniform and the reason for the disagreement is the variation in the traditions.
(a) According to Maliki
The amount is four dinars for those who transact in gold and forty dirhams for those who transact in silver.
(b) According to Al-Shafi
The minimum is fixed at one dinar and the maximum is depend on what the negotiate to pay.
(c) According to Abu Hanifah
The Jizay ranges between twelve dirhams, twenty four dirhams and forty eight dirhams. The poor person is not to pay less that twelve dirhams and the rich person is not to pay more than. Forty eight dirhams. The person of average means is to pay twenty for dirhams.
(v ) Mode of paying Jizya
The jizya should be paid in money but it may be paid in kind e. g. garments.
(vi) Jizya at present juncture
Jizay is disappeared at present juncture. The last trace of it disappeared after the revolution in turkey when Christians also do military service.
(V) Khums
Khums consisting of one-fifth of the property acquired from the non-Muslim by conquest and one fifty of the contents of mines, escheats and forfeitures. It is takes only once.
(VI) Trade tax
It is levied upon and collected from Muslim and non-Muslim tradesmen. Its rate is fixed according to the exegencies of time.
4. Objectives of revenue in Islamic state
Following are the objective of revenue in Islamic state.
( i) Economic well-beings within the framework of the moral norms of Islam.
(ii) Universal brotherhood and justice.
(iii) Equitable distribution of wealth.
(iv) Freedom of the individual within the content of social welfare.
5. Conclusion
To conclude, I can say, that due to the concept of welfare state Islamic state has to perform multifarious functions and for this revenue has to be collected from various sources. Of the above the proceeds of the poor rate and one fifth of the khums and of the contents of mines are ear-marked for the use of the poor and the indigent. The rest of the revenues is to be spend for the purpose of administration generally.

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