Chapter`s Outlines
Meaning of Fiscal Policy Fiscal Policy of Islamic State Zakat as an Instruments of Fiscal Policy Impact of Zakat on Economy Bait-Ul-Mal, its definition and sources Theory of taxation and principle of taxation Nature of Public Expenditures in Islamic State
Literally bait ul Mal means the house of wealth In technical terms, it is the establishment of public exchequer is necessary to enforce the economic system of Islam
The rules of receipts and disbursement of bait-ul-Mal have been formulated in Islamic system of government
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Other Source
Is taxation allowed..??
Yes , BUT
All taxes other than Zakat are imposed as an exception NOT rule Islamic state is authorized to impose taxes in addition to Zakat as a supplementary or complementary policy because, Achievement of Sustenance Welfare is a duty of Islamic state and Greater Welfare is desired.
Theory of Taxation
In the traditions the word Makas has been used to denote Tax. The tax collector was called Al-Makas
First time, in the reign of Hazrat Umar (R.A) the duty was imposed on Muslims and merchants of Non Muslim countries. If anyone had paid Zakat he could seek exemption by submitting an affidavit.
Defense Law and order Justice Provision of basic necessities Propagation of Islam Promotion of Good and prevention of evil Civil administration For social services