economic system in islam
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very important Document to know Economic system of Islam.TRANSCRIPT
![Page 1: Economic System in Islam](https://reader038.vdocument.in/reader038/viewer/2022100519/55cf9aba550346d033a317fa/html5/thumbnails/1.jpg)
Economic System in Islam Overview
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State Property◦ Arms industry, Steel industry
Public Property◦ Energy, Rivers, Transport etc.
Private Property◦ Home, Cars, Industry etc.
Types of Property
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Uncultivated land for over 3 years, is taken by State and redistributed.
A citizen can take any amount of land which is not owned by anyone in order to fence it and start its cultivation
Loans available from bayt-al-Mal
Land Reforms
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Revenue: Zakat, Jizya, Khiraj, Ushr
Emergency Tax◦ Limited duration only
State Business
Public Business (Public property)◦ Reinvested in expansion
Revenue Generation
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Taxation System
Khilafah Capitalism
- No taxes on common man- Tax on Savings
GST Tax, Income Tax, Withholding tax, toll tax etc. are all haram and will be abolished.
-There will be following permanent sources of revenues in an Islamic State:a. Al-Kharajb. Al-Jizyac. Al-Ushrd. The fifth of Al-Rikaz (hidden
treasures / minerals.
-Taxes on common man- Tax on income
63.93% (Rs 840 Billion) of revenue of Pakistan comes from taxes on the people as per the budget 2006-2007 figures.
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Generated revenue goes in different accounts.
Revenue spent according to needs of area and not based on its productivity.
Revenue Expenditure
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Backed by Gold/Silver Not based on FIAT model. Does not loose value over time. States economy is not effected by fall in
value of foreign currency.
Currency
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Interest not allowed. No alternatives to batil /Fasiq methods People will:
◦ Take money out and invest◦ Keep money in homes◦ Keep money in Financial Institutes
Financial Institutes
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Interest◦ Banking, Loans, Prize bonds,
Gambling◦ Commercial gambling, Lucky draws, stock
exchange.
Result◦ Investment in real economy.
Prohibtions
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Man is not viewed merely as a unity of economic value
Capitalist view man as unit of economic value
Capitialism:◦ Freedom of Capital, Freedom of ownership
Economic Value
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Flow of knowledge cannot be restricted. Seller cannot restrict ownership of product
sold.
Technology, Books etc. cannot be copyrighted.◦ Expensive medicine today. Khilafah will reduce its
cost.◦ Attract scientists from around the world.
Trademarks allowed.
Patents