Impact of zakah on government expenditure

Big thursday by anne brooksbank
June 30, 2020
Short-Term Financing Needs
June 30, 2020

Impact of zakah on government expenditure

Impact of zakah on government expenditure

Zakah is a fundamental resource of financial resources of the state in the Islamic economic system, which is levied on all wealth   and therefore the outcome of the abundant come from money the state can rely on to finance economic development. First of all, the tax rates in the Europe and Western economics of 20%-30% we are talking about income tax that is imposed on the income. Rather in Islam Zakah is imposed on the net worth that is much more than and income which someone gets in one year. If, for ex, a person has four or five high rises that he wages out he will pay Zakah on his pure worth, not just on the income. Historical speaking as we mentioned in a during the reign of Omar bin Abdul Aziz near the end of the first century of Hijrah Zakah from North Africa was collected, and there weren’t enough poor people to claim it, which is why he instructed the local ruler to buy slaves and set them free. Historically, this did happen, and I am sure that even today if we only took from the Muslim world and if all Muslims are true their faith and everyone contributes the 2.5% on their net worth then I am sure will not find a single person would be hungry or in need. Tayy,b basher.
2010. Zakah is a stable thing and no one has the right to change it because it was given in revelation. If we open the door for Zakah to be flexible every government can exploit that and we would get unjust rulers who play around with it. This 2.5% is very reasonable, permanent and not excessive. In the meantime we find that Islam allowed a just government if there is a need for it and if the amount of Zakah is not enough. First, they have to start from Zakah and if it is not enough then they can move to other things. There are a number of evidences in the Quran that speak about paying Zakah and about being charitable which we find in (2:177). The Prophet (PBUH) said as is narrated in Al Tirmidhi that in your property there is a claim beyond the amount of Zakah and this is a very sound and strong tradition. There are also additional texts that indicate that Zakah is not the bare minimum. At the same time there must be a genuine need for the additional funds beyond Zakah and the burden should be distributed in an equitable way and it should be spent wisely and done after the approval and consent of the people In Muslim countries there is great need for reducing israf (prodigality) in consumption. This is considered necessary for strengthening and promoting zakat base. It is observed that in a Muslim country if the government wants to implement zakat system by legislation it should simultaneously launch an educational and moral suasion programme to reduce israf in consumption. Reforms in important policies and tax structures can help in achieving this objective. In short, the starting point for any government should be one to impose zakat at the rate of 2.5 percent along with policies to reduce israf in consumption both in public and private sectors (monzer kahf.economics of zakah.1997.p184-190)