Ruling on implementing taxes

2-4-2023 | IslamWeb

Question:

I always hear about the zakat tax which is ordained by Allah while other taxations are haram except for the Jizya, but if the zakat is only 2.5 percent annually, how will it be enough for the expenditures of a government or the welfare of people, historically it has not been enough as people had to implement more taxes, so how would a government get money? trade is not viable at all compared to taxation.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad, sallallaahu`alayhi wa sallam, is His slave and Messenger.

Saying that Zakat historically was not enough and that people should have imposed more taxes, and that trade is not feasible compared to taxes, all of this is just a claim rejected by the conditions of many Muslims in successive times, as they did not need taxes or excise. Zakat, alms, endowments, and trade in all its industrial and agricultural fields, minerals in the ground, and other sources were sufficient to establish the state, build the country, and meet the needs of the people, provided that the money is taken rightfully and spent in a rightful way. In case when there are conditions and circumstances that require imposing taxes to provide the necessary services such as paving roads and building hospitals and schools, then there is nothing wrong with imposing them in a just and fair way.

Allah knows best.