1) Preface

•There are difference source of Islamic revenue such as Zakat ,Ushar,Khiraaj,jizya and khums

•Zakat is a pillor of Islamic revenue system and it is an annual tax upon yearly saving of one

person order for giving zakat is repeated in Holy Quran. Zakat helps to remove poverty

from community and it is the major economic source for establishing financial justice

•Ushar is also form of tax which is imposed in lands of muslims of the community and it is

annual tax which mean one tenth

•Khiraj is also form of usher but it is being imposed upon non-Muslims land within the state

•Jizya is an annual personal tax which is imposed upon Non-Muslims of the state against their

protection within the state

•As well as there are a lot of taxes which have been imposed on the members of the muslim

and non-Muslim community and these all are major sources of an Islamic state

2) Sources of Revenue

Following are five sources of an Islamic state

1. Giving Zakat

2. Ushar

3. Khiraj

4. Paying Jizya

5. Khums

1) What is Zakat (Poor Rate)

•Zakat is a tax which imposed(Lagu) on Muhammadans alone and it is Yearly paying the

payment which is obligatory act of worship

i. Meaning

•Zakat means GROWTH or PURIFICATION

ii. Importance of Zakat

•Zakat is a right of ALLAh and It is a duty of every Muslim to give zakat to those who are

poor. A number of verses in Holy Quran for order to pay the Zakat which is 2.5 % of

yearly savings of wealth

Quran Says:

“SO ESTABLISH WORSHIP, PAY THE POOR- DUE AND HOLD FAST TO ALLAH”

iii. Upon whom Zakat levied (Lagu)

•According to Muslim jurists ,it is obligatory upon every Muslim

•who is Free ,Sane, baligh and owns wealth equal to prescribed Nisab

iv. Persons entitled to Zakat

1) The poors and needy

2) To thouse who cannot meet their basic needs

3) To zakat collectors

4) To those who converts Islam recently

5) Those who are in debt

6) To traveller

7) In the way of ALLAh

8) To free from the slavery

v. Nisab of Zakat

•The nishab of Zakat is 7.5 tolas Gold and 52 tolas Silvers if someone have such thing he

is liable to give zakat

vi. Rate of Zakat

•Rate of Zakat is 2.5 % of yearly savings

vii. Realization of Zakat

•Zakat was realized by Hazrat Abu Bakar Siddique (R.A)

2) Ushar

•Ushar means “One tenth” and this is the Tax on all lands of the Muslims of the country

i. Rate of Ushar

•Upon naturally irrigated land is 1/10 % e.g by rains, floods etc

•Upon artificially irrigated land is 1/20 e.g by Wells ,canals etc

3) Khiraj

•Khiraj is the tax on the production of land of all Non-Muslims that Land which has been

conquered by Muslims after fighting

I. Rate of khiraj

•The rate of Khiraj vary with the kinds of crops grown on land

•It never exceeds from half of the value of production

II. Exemption from Khiraj

•If land get destroyed by flood or fire in this case khiraj is exempted for that year

Exception

If the land get destroyed by negligence of the owner in this case khiraj is not

exempted for that yea

4) Jizya (Personal Tax)

•Jizya is an annual personal tax which has been imposed upon Non-Muslims of the state

upon those Who has fought against Islam or are able to participate in a war against Islamic

state

a) Upon whom jizya imposed

Jizya is imposed on those who have following of the three characteristics

1. Must be a Male Person

2. Must be free

3. Must be a Major

b) Persons exempted from Jizya

Following are the person who exempted from Jizya

1. Religious personality 5) Women

2. Slave 6) Minor

3. Disables

4. Non-muslims giving military services

c) Mode of imposing Jizya,:

Following are the two modes of imposing jizya

•Under an agreement in which its amount to be determined by the parties

•Under an agreement in which its amount to be determined according to income

of each individual

d) Amount of Jizya

Amount for jizya is not fixed because it varies time to time

e) According to Abu Hanifah

•The jizya ranges are between 12 Dhirham,24 dirhams and 48 dirhams

•Poor can’t pay less than 12 dirhams

•Rich can’t pay more than 48 dirhams

•Moderate person will have to pay 24 dirhams

f) Mode of paying Jizya

•Jizya can be paid in mode of currency

•It also can be paid other than currency such as garments etc.

g) Jizya at present time

•Jizya is disappeared at present time after the revolution in Turkey since when

Christian also do military service

5) Khums

•Khums consisting of 1/5 of the property and it is being collected even from Muslims or Non-

Muslim of the state but It is taken only once

i. Trade Tax

•It is laveid upon all and collected from Muslim and Non-Muslims tradesmen

•Its rate is fixed for all and tt is taken for once

3) Objectives of Revenue

Following are the objectives of revenue in Islamic state

•Protecting the society from crimes by paying the poor’s

•Equal distribution of wealth among all

•Peace and prosperity among the people of the state

•Social and financial development of society

4) Modern Sources of Revenue

Following are the some modern sources of Revenue in Islamic state

1. Income Tax

2. Sales Tax

3. Property Tax

4. Wealth Tax

5. Custom and excise duty

6. Court fee

5) Preclude

•Paying taxes makes the individuals responsible and caring persons. Such kind of revenue in the

shape of money or other made the financial position of the country strong . It is very much

cleared and proved that the System of Zakat plays effective and successful role in developing the

social life and moral values of Muslim society. Other sadaqat which are not compulsory ,they

also play the pivotal role in supporting the poor people.