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Journal articles on the topic 'Islamic Taxation'
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Geronimo, Rusell. "Taxation of Islamic banking transactions." Bratislava Law Review 2, no. 2 (December 31, 2018): 79–90. http://dx.doi.org/10.46282/blr.2018.2.2.110.
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The paper examines the juridical character of eight common Islamic banking transactions: murabahah, tawarruq, ijarah, istisna, salam, musharakah or mudaraba, sukuk, and takaful. It then compares each Islamic banking product with an equivalent conventional banking product, examines their differences in terms of transaction design, and shows whether these contractual differences result in differential tax treatment.
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Korneev, V. V., V. Y. Khaustova, and A. O. Khodzhaian. "Progressive Taxation of Individual Income in Islamic Countries." PROBLEMS OF ECONOMY 2, no. 48 (2021): 187–93. http://dx.doi.org/10.32983/2222-0712-2021-2-187-193.
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The economic results of the development of Muslim countries have raised the question of the existence of an increasingly focused Islamic financial and tax model. Taxes in the Islamic economic model provide an implicit link in the relations between the state and individuals, thus determining the limits of conditioned freedom and mutual obligations. The article is aimed at identifying the indicative features of progressive taxation of individual income in some Islamic countries. The research results show that Islamic countries are characterized by the unity of religion (faith) and such elements of the social system as the organization of power, as well as family, economic and other relations. The boundaries of the personal and the public, the individual and the national are transparent and strictly regulated. The peculiarities of the Tax Institute in Muslim countries, terms of taxation and tax usage rules are considered. It is proven that nowadays approaches to taxation in Islamic countries are diverse. It is determined that progressive taxation of individual income is widely used in Turkey, Pakistan, Tunisia, Indonesia, Nigeria, and other countries, and partly in Saudi Arabia; "tax heavens" are typical for the UAE, Kuwait, Qatar, Bahrain, and Omani; proportional taxation is still used in Malaysia, Sudan, and Kazakhstan. The main types of taxes in Muslim countries are analyzed, their evolution is studied. Modern foci of progressive taxation of individual incomes in specific Muslim countries are revealed. The advantages of the Islamic financial model in terms of tax policy modernization and compliance with tax discipline, unconditional fulfillment of obligations and concluded agreements are identified. It is substantiated that using some elements of the progressive tax scale applied in the practice of Islamic finance can prove useful in a number of areas, providing budgetary and social balance in the "corridor of opportunities", bringing mutual responsibility of citizens and the state in fulfilling obligations, creating an annuity and mutually beneficial economic behavior pattern. It is proved that the progressive tax withdrawal of a part of large incomes will give a restrictive and restraining result of control over their redistribution in the public interest, as the socio-economic behavior of individuals, their powers and responsibilities must be balanced
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Hussain, Muhammad. "A Macroeconomic Taxation Model for an Islamic Economy." Pakistan Development Review 32, no. 4II (December 1, 1993): 947–60. http://dx.doi.org/10.30541/v32i4iipp.947-960.
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Present day Islamic states are called for performing many functions like the ones stated by Siddiqi (1986). He has given a long list of functions, which are to be performed by the present day Islamic states. He has classified them into the following three-broad categories: 1. Functions permanently assigned by Shariah. 2. Functions derived on the basis of ljtihadi for the present situation. 3. FUllctions assigned to the state by the people through the process of Shura (i.e. consultation). Performance of these functions is only possible if enough resources are available to the present day Islamic states. Under the circumstances the present writer is of the view that for satisfying the revenue needs of the present day Islamic states, there is no way out except to resort to new taxes in addition to the traditional taxes. Some Muslim jurists of the medieval period of Islamic history especially AIGhazali (1937) and AI-Shatibi (1914) have, permitted that additional taxation can be resorted to if the needs, particularly the defence needs, of the state require so. Some Fuqaha [AI-Qardawi (1980)J have also laid down certain conditions for levying of additional taxes. These conditions are briefly stated below:
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Coşgel, Metin, Thomas Miceli, and Rasha Ahmed. "Law, state power, and taxation in Islamic history." Journal of Economic Behavior & Organization 71, no. 3 (September 2009): 704–17. http://dx.doi.org/10.1016/j.jebo.2009.02.017.
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Jahan, Samsad. "Zakat versus Taxation as Islamic Fiscal Policy Tool." International Journal of Islamic Economics 3, no. 1 (July 1, 2021): 37. http://dx.doi.org/10.32332/ijie.v3i1.3129.
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Linking Islamic instrument like zakah with social responsibility and economic growth is an area which is often unspoken. As such, this research intends to find out the potential challenges zakah can face while it is used as fiscal policy tool which has link with Islamic socially responsible financing to economic growth to poverty alleviation mentioning few. Though many Muslim based countries using Tax as an alternative tool for government earning, zakah as a tool has broader spectrum from having impact on economic development to the role as an instrument for Islamic socially responsible finance. This research uses qualitative paradigm to analyze the literature. The research is based on a desk-based research. The findings of this research prove that there are challenges to establish zakah as prescribed in the revealed text which can be minimized through different actions. It is projected that properly executed plan to manage zakah could be used as an instrument of fiscal policy as well as an Islamic socially responsible financing instrument.
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Moqbel, Tareq. "The UK Islamic finance taxation framework and the substance v form debate in Islamic finance." Legal Ethics 18, no. 1 (January 2, 2015): 84–86. http://dx.doi.org/10.1080/1460728x.2015.1084792.
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Razali, Ramadhan, and Sutan Febriansyah. "EKSISTENSI KEADILAN SOSIAL DALAM KEUANGAN PUBLIK ISLAM." Jurnal Ekonomi Syariah, Akuntansi dan Perbankan (JESKaPe) 3, no. 2 (November 8, 2019): 40–56. http://dx.doi.org/10.52490/jeskape.v3i2.431.
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The Conclusion form this research is social justice in Islamic societies can prosper society and advance the economic level of the State. The existence of the principle of social justice can be seen from the instruments of Islamic distribution of interest in equalizing wealth in society. The principle of justice is also contained in the Islamic land tax instrument. Therefore, the bidding instrument in Islamic public finance offered by Abi Ja'far Ibn Nasr al-Dawudi is very relevant to this era.
This study uses Adam Smith's taxation theory which says that the principles of taxation are certainty, fairness, economics, and belief. While for the theory of social justice the writer uses the theory of John Rawls which explains about justice must represent the principles of justice and equality.
The method used by the author is a qualitative method. Through collecting data and information through literature (library research). As primary data in this study is the book Al-Dawudi, that is Wa b Al-Amwal by Abi Ja'far Ibn Nasr Al-Dawudi. While for secondary data the authors use books related to the theme, namely the thesis or dissertation of journals and information media relating to the theme of this thesis. What was being discussed was discussing history and discussing contemporary Islamic economics.
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Saifudin, Saifudin, and Bella Fazrine Darmawan. "Pengaruh Motivasi Terhadap Minat Mahasiswa Akuntansi Mengikuti Program Brevet Pajak (Studi Kasus Pada Mahasiswa PTS Di Semarang Tahun 2019)." JEMAP 2, no. 2 (January 23, 2020): 216. http://dx.doi.org/10.24167/jemap.v2i2.2269.
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Taxation Licence Program established to improve the taxation quality of a professional tax consultant in the future. The Taxation Licence program will not produce a professional tax consultant which acceptable by the company if the students did not have high motivation to study about tax in professional way. Based on this background, the objectives of this research is to analyzed if carrier motivation, economic motivation, quality motivation, and social motivation as the independent variable have some effects on accounting students interest to joining in Taxation Licence program as a dependent variable. The sample of this research using direct survey method that distributed to 324 respondents of accounting students in Economics and Business Faculty of Soegijapranata University (UNIKA), Sultan Agung Islamic University (UNISSULA), and Dian Nuswantoro University (UDINUS). Data in this research were obtained using questionnaires and were analyzed. The hypothesis testing in this research using outer model and inner model analysis with SEM PLS release 3. The result of this analysis showed that all of the independent variable, such as career motivation, economic motivation, quality motivation, and social motivation significantly affect accounting students interest to joining in Taxation Licence program. It indicated that a self motivation for having an taxation licence was more competitive than just graduates from undergradute accounting program, so they become more professional and get better career in taxation.
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Setianingrum, Any. "DESENTRALISASI FISKAL KONTEMPORER DALAM PERSPEKTIF KEBIJAKAN PUBLIK ISLAM." Journal of Innovation in Business and Economics 4, no. 1 (August 14, 2014): 1. http://dx.doi.org/10.22219/jibe.vol4.no1.1-12.
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One of the essential instruments designed for achieving the goals of sharia in Islam is fiscal policy. There are some key elements of Islamic fiscal theory, namely: 1) Islamic Economics, which comprises private sector, social/ voluntary sector, and public sector. The collaboration of these three sectors would provide an ideal Islamic economic institutional framework; 2) Zakat (taxation of income and wealth of a Muslim) as the basis of fiscal system; 3) Implementation of all fiscal instruments which disallow exploitation that results in usury (riba), uncertainty (gharar ), speculation, sinful (haram) products / services and all forms of meanness. 4) Allocation, distribution and stabilization functions of Islamic economics is administered and presented through all the sectors cooperatively; 5) Public sector does not affect significantly yet essential on condition that it works continuously to ensure optimum allocation of society resources, income distribution, and stability establishing
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Abdullahi, Nuruddeen Abba. "Islamic Banking in Nigeria: Issues and Prospects." Journal of Emerging Economies and Islamic Research 4, no. 2 (May 31, 2016): 34. http://dx.doi.org/10.24191/jeeir.v4i2.9085.
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The Nigerian banking reform precipitated the adoption of Islamic banking and finance in 2009 as additional door to banking mechanism in the country. However, the implementation of the Islamic banking or non-interest banking has generated a lot of debate, specifically because its foundations are based on Islamic religion. This paper briefly reviews the concept, the challenges and prospects of Islamic banking in Nigeria. The paper relies on the secondary sources by reviewing and analysing various works on the subject. A reflection on the size of its population and the developmental opportunities indicates that Nigeria has the prospect of becoming the hub centre of Islamic finance in Africa. Yet there are numerous challenges to the development of the Islamic banking system in the country, including misrepresentation of the system, lack of linkages and investment institutions, lack of adequate knowledge, as well as shroud business ethos and corruption, which is endemic in the country. The paper recommends the need for greater public awareness about Islamic banking and creation of enabling environment (i.e. the legal, accounting and taxation systems) for the working of Islamic financial system.
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Madnasir, Madnasir. "Distribusi dalam Sistem Ekonomi Islam." Muqtasid: Jurnal Ekonomi dan Perbankan Syariah 2, no. 1 (July 1, 2011): 57. http://dx.doi.org/10.18326/muqtasid.v2i1.57-71.
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Distribution of economic activity in a government are very important. This is because the distribution itself became an objective of fiscal policy in a government with a form of taxation (taxes are both individual and corporate taxes). When talking about economic activity in the distribution, of course, will talk about the concept of “economy” that “offered” by the Islamic. Looking at how Islam introduced the concept of equitable distribution of wealth of the country through the distribution, which is certainly not independent of the state revenue the teachings of Islamic Shariah, such as waris, sadaqah, zakat and waqf.
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Adi Purwanto, Thesa, and . "Comparison of Amendments to the Value Added Tax Law between Indonesia and Malaysia to Regulate Murabaha Transactions." International Journal of Engineering & Technology 7, no. 3.25 (August 14, 2018): 114. http://dx.doi.org/10.14419/ijet.v7i3.25.17479.
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Islamic banking in their activity base on Islamic principles that is agreement regulation on Islamic Law between Bank and others to saving and or financing an activity or business which suit Islamic role. There are several forms of financing, such as financing on sharing profit principle (mudharabah), financing on participation principle (musyarakah), transaction goods principle which get profit (murabaha), financing capital goods on rent principle without choice (ijarah), or with transfer authority over the rent goods from bank to others (ijarah wa iqtina). Furthermore, development of Islamic banking either in Indonesia or Malaysia must be followed with new law and regulation from their government, especially for rules on taxation over transaction on Islamic banking. This is critical because there are different interpretation and argumentation between practitioners of Islamic banking and the government about the subject of Value Added Tax on murabaha transaction. This research used a qualitative approach, using literature study, which emphasizes books as an object and field study with collecting data by interviewing and also using secondary data. As a result, both Indonesia and Malaysia has undergone essential steps to provide Islamic finance with appropriate banking and tax regulations that have succeeded in supporting the Islamic financial system.
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Salaymeh, Lena. "Taxing Citizens: Socio-legal Constructions of Late Antique Muslim Identity." Islamic Law and Society 23, no. 4 (November 17, 2016): 333–67. http://dx.doi.org/10.1163/15685195-00234p01.
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The regulations pertaining to Islamic charity taxation illuminate underappreciated dimensions of how Muslims defined identity boundaries in late antiquity. To demarcate the contours of a historical process of Muslim identity construction, I analyze Islamic jurisprudential debates about who is and who is not obligated to pay the charity tax. Most late antique and medieval jurists made the charity tax incumbent on minors or others lacking full legal capacity, even though these groups were exempt from “for-thedivine” practices. I suggest Muslim citizenship as a framework for understanding late antique Muslim identity. Because charity tax liability had socio-political and economic implications, it functioned simultaneously as a gate into and out of a Muslim community. This article contributes to the discourse on Islamic beginnings by exploring the intricacies of Muslim self-conceptions in late antiquity.
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Idris, Zainab. "Challenges Faced in Full Establishment of Islamic Banking System in Nigeria." International Journal of Islamic Business & Management 1, no. 1 (October 4, 2017): 1–6. http://dx.doi.org/10.46281/ijibm.v1i1.44.
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Islamic banking in Nigeria is still at its infant stage and surrounded by a lot of challenges and set bank. It is important to note that despite the huge number of Muslims population in the country, little progress has been made in ensuring its full take off and operationalization. The paper there examines the challenges Islamic banking is faced with in Nigeria. Through review of past studies, the paper the paper identify factors like; Problem of Competition with dominant conventional banks, Problem of Competition with dominant conventional banks, Double taxation and others as the major challenges of Islamic banking in Nigeria. However the paper, the paper recommends that Islamic banking and finance in Nigeria offers a huge investment opportunity for both domestic and foreign investors what is most needed to achieve this, is for all stakeholders to collaborate in a way that a structured, functional and sustainable Islamic banking model will be formulated and communicated widely so as to gain general acceptability. Furthermore, the paper will serve as a guide to investors by pointing the problems the Islamic banking sector is facing in Nigeria.
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Maggs, Peter B. "Islamic Banking in Kazakhstan Law." Review of Central and East European Law 36, no. 1 (2011): 1–32. http://dx.doi.org/10.1163/092598811x12960354394641.
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AbstractKazakhstan has adopted legislation designed to facilitate Islamic banking, and at least one Islamic bank has started operations in Kazakhstan. Islamic banking is based upon traditional Islamic law, which forbids the taking of interest, the making of profit without risk, and profiting from "sinful" businesses such as pornography. The legislation in Kazakhstan forbids such activities for Islamic banks and also requires each Islamic bank to have an independent "Council on the principles of Islamic finance" to rule on bank policies and specific transactions. Islamic banking practices use complex combinations of transactions, each permitted by Islamic law, to mimic common conventional banking transactions, such as loans bearing fixed interest rates and repayable on a fixed date. Stable income and manageable principal obligations from credit-worthy borrowers can ensure that a bank will receive high ratings from leading international credit rating agencies and, thus, can satisfy the requirements of Kazakhstan's bank regulators. The formal difference between Islamic banking transactions and the conventional transactions that they mimic could lead to differing treatment for taxation. To provide a level playing field, Kazakhstan has amended its Tax Code to provide for equal treatment of economically equivalent Islamic and conventional banking transactions. Adjustments have also been made to bankruptcy legislation, reflecting the unavailability of deposit insurance for Islamic banks and the special nature of investment deposits in Islamic banks. There are controversies among Islamic law scholars as to whether or not various practices used to mimic conventional banking transactions are unlawful because they violate the spirit of Islamic law. This creates what is called "Sharia risk", the risk that a transaction will be found unlawful after it has been concluded, with consequences highly unfavorable for a party.
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Shovkhalov, Sh A. "Modern Approaches to Studying the Islamic Taxation in the Russian Market of Muslim Goods." Digest Finance 22, no. 3 (September 15, 2017): 356–561. http://dx.doi.org/10.24891/el.22.3.356.
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Shovkhalov, Sh A. "Modern approaches to researching the Islamic taxation in the Russian market of Muslim goods." Финансы и кредит 23, no. 19 (May 29, 2017): 1144–52. http://dx.doi.org/10.24891/fc.23.19.1144.
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Shovkhalov, Sh A. "Modern Approaches to Studying the Islamic Taxation in the Russian Market of Muslim Goods." Digest Finance 22, no. 3 (September 15, 2017): 356–561. http://dx.doi.org/10.24891/df.22.3.356.
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Revkin, Mara Redlich. "What Explains Taxation by Resource-Rich Rebels? Evidence from the Islamic State in Syria." Journal of Politics 82, no. 2 (April 2020): 757–64. http://dx.doi.org/10.1086/706597.
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Özdemir, Öznur. "Early Islamic Institutions: Administration and Taxation from the Caliphate to the Umayyads and Abbâsîds." International Journal of Islamic Economics and Finance Studies 4, no. 3 (November 30, 2018): 102–4. http://dx.doi.org/10.25272/ijisef.490018.
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Irvani, Ahmad. "INGGRIS SEBAGAI SENTRAL KEUANGAN ISLAM DI BARAT." ASY SYAR'IYYAH: JURNAL ILMU SYARI'AH DAN PERBANKAN ISLAM 1, no. 1 (June 30, 2016): 120–43. http://dx.doi.org/10.32923/asy.v1i1.668.
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United Kingdom is a country that is predominantly by non-Muslim, but development of Islamic banking and finance is very good. This is evidenced by the operation of six full sharia bank and the sixteen banks that serve Islamic windows. Sukuk deals for investors is also growing as evidenced by the increasing demand on the London Stock Exchenge with a total of £51 billion. Likewise with takaful products, UK re/insurance markets that are transacting Islamic finance. As one of the largest insurance markets in the world, and the leading global centre for wholesale insurance and reinsurance, the UK has the potential to support the growth of takaful business in the coming years. The development of Islamic banking and finance did not escape from the multicultural population of the UK. From the research, UK residents both Muslims and non-Muslims showed 66% of respondents believe the Islamic financial system is suitable for western economic communities such as the UK. 65% of respondents understand the workings of Islamic banking differs from conventional banking workings. 60% of respondents agree Islamic banking relevant to all religions. 57% of respondents also knew of Islamic banking to give the profit, not the interest. This means that they responded positively to the products offered Islamic banking and finance. There are several factors that lead to Islamic banking and finance can be grown in the UK, there are: including the global expansion of Islamic financial, single banking and financial regulator, public policy and taxation, the establishment of the Islamic Bank of Britain, the excess liquidity in the Middle East, Islamic windows of regular banks, and the development of educational and training institutions in the UK. This paper will describe the history of Islamic banking and finance in the UK, its development, factors that support and the its future prospects for giving additional knowledge to the academics and practitioners.
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Murtadho, Ali. "KONSEP FISKAL ISLAM DALAM PERSPEKTIF HISTORIS." Economica: Jurnal Ekonomi Islam 4, no. 1 (May 3, 2016): 33. http://dx.doi.org/10.21580/economica.2013.4.1.759.
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<p><em>Fiscal policy is not synonymous with Islam taxation / tribute that made the king / emperor , nor synonymous with modern fiscal policy born of the failure of the free market mechanism. Referring to public finance policy at the beginning of the Islamic era, Islamic fiscal policy is a practical representation of the mission of the Islamic economic system oriented religiosity , justice and wealth distribution.</em></p><em>Not only deal with the fiscal revenue and expenditure of state revenue but also about the mission of fair distribution of wealth . Jizya, kharaj and ghanimah is a fiscal instrument in accordance with the circumstances at that time for the mission fair distribution of wealth . Based on the concept of fiscal Islam , then the application of fiscal policy now must somehow form could lead to a fair distribution of wealth towards a comprehensive community welfare ( falah ), not just the budget deficit </em>
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al-Din Yousefi, Najm. "Confusion and Consent: Land Tax (Kharāj) and the Construction of Judicial Authority in the Early Islamic Empire (ca. 12–183 A.H./634–800 C.E.)." Sociology of Islam 7, no. 2-3 (September 23, 2019): 93–131. http://dx.doi.org/10.1163/22131418-00702004.
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This essay examines the Islamic land tax (kharāj) during the first wave of the Arab conquests (ca. 12–24/633–50) and the following century and a half. Highlighting the confused state of land tax and landholding, it argues that Sunni jurists incorporated land tax into Islamic law despite the lack of Qurʾānic injunctions and prophetic tradition. In doing so, they drew upon Qurʾānic concepts such as fay’ and ghanīma while reinterpreting a vast body of conquest narratives and traditions that helped present land tax as a bona fide Islamic practice. A major outcome of this juristic discourse of public finance was the recognition of the ruler’s right to discretionary taxation. Just as the jurists emphasized justice and equitable application of tax laws, they also enabled the government to enjoy a wide latitude in its fiscal management without legal backlash. It further allowed the jurists to speak for God and His Prophet.
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Mustafa Abodher, Fareg, Zaimah Zainol Ariffin, and Natrah Saad. "Religious factors on tax non-compliance: evidence from Libyan self-employed." Problems and Perspectives in Management 18, no. 1 (March 23, 2020): 278–88. http://dx.doi.org/10.21511/ppm.18(1).2020.24.
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Tax non-compliance phenomenon has become a key issue for developing countries such as Libya because it hinders taxpayers from contributing effectively to the economy. Previous literature refers to diverse socio-psychological factors that influence tax non-compliance behavior. Nevertheless, there is a lack of study on the influence of religious factors on tax non-compliance. Therefore, the current study empirically examines the impact of Islamic perspective and Islamic religiosity on tax non-compliance behavior among self-employed taxpayers in Libya. A quantitative method using a questionnaire is utilized to collect the data. Structural equation modeling was employed using PLS. This study provides empirical evidence that Islamic perspective and Islamic religiosity have a significant positive relationship with tax non-compliance among Libyan self-employed. Theoretically, the findings have extended the body of knowledge by providing empirical evidence on the effect of religious factors on tax non-compliance. Practically, the study provides fruitful insights for policymakers and government officials to consider these factors as crucial while formulating taxation policies to minimize the phenomenon of tax non-compliance among Libyan individual taxpayers and, hence, increase government revenue.
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Widiyanti, Dwi Retno. "Redistribution Adjusts Efficiency in Economy; Islamic Paradigm." Global Journal of Business and Social Science Review Vol. 2(4) 2014 2, no. 4 (October 12, 2014): 18–27. http://dx.doi.org/10.35609/gjbssr.2014.2.4(3).
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Objective - Islam regulates distribution also redistribution of wealth, and how this concept break away the inefficiency of economic activity.The concept of redistribution has always been a debate in every microeconomics discussion in various areas, such as its mechanism, its implementation and also its effect on the efficiency of economies. This research is trying to examine how the concept of redistribution benefits the efficiency in economy through partial equilibrium analysis. The literature on the concept of Islamic paradigm and the positive paradigm are managed to produce a comprehensive study. Methodology/Technique - – This study was conducted using research methods of literature studies, both of textbooks and handbooks in the same fields of studies. The simulation case applied on thezakat implementation in adjusting new equilibrium of supply and demand, and also on taxation and subsidy to get the comparison view. Findings - Architecture Design Studio based learning in a Technical Study module, students were able to enhance their critical thinking skills based on the scientific approach. Overall, it allowed for the development of the student's discipline-specific knowledge, gaining new knowledge and skills to simulate using digital tool and enhance their analytical skills. Novelty – Interestingly, zakat implementation will not lead to inefficiency in the economy, because the shifts of demand and supply curve result the larger amount of quantity of product in the same price level.Taxation and subsidy mechanism will lead to inefficiency in the economy, because the shifts of supply and demand curve result the smaller amount of quantity of product at the highest level of price. Type of Paper - Conceptual Keywords: Efficiency, Distribution, Islamic economic, Redistribution.
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Saidu, Oluwaseun Sulaiman, Murat Cizakca, and Rodney Wilson. "HARMONIZATION IS THE ONLY “GAME” IN TOWN; ACTUALIZING THE FUNCTIONALITY OF VITAL ISLAMIC FINANCIAL INSTITUTIONS: A CASE OF WAQFS IN NIGERIA." Jurnal Syariah 29, no. 2 (August 31, 2021): 175–94. http://dx.doi.org/10.22452/js.vol29no2.1.
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While it is true that more often than not, constitutional democracies might enshrine freedom of religion and thus provide for equal treatment of all religions within a given state, the Islamic characterization of the waqf institution transcends the subsisting limits allowed for in the not-for profit legal infrastructure including their taxation exemption provisions in the Nigerian state. According to modest statistics, Nigeria is home to about 100 million Muslims but her governing laws are at best described as secular. The objective of this research is therefore to harmonize the Islamic law of waqf institution and the extant not-for-profit laws in Nigeria such that the institution can function within the Nigerian state without infringing on the Islamic Shariah whilst at the same time complying with the constitutional dictates of the country. The merits of such an exercise are numerous. It could readily be replicated in other non-Muslim jurisdiction across the world. Nigeria being the largest economy in Africa, the dividends of such an exercise would cascade across the continent consisting mainly so called developing countries.
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Muqorobin, Ahmad. "al-zakah wa al-?aribah fi al-Fiqh al-Islami wa al-qanun al-Indunisi (Dirasah Tajribiyyah Muqaranah)." Ulul Albab: Jurnal Studi dan Penelitian Hukum Islam 3, no. 2 (April 30, 2020): 198. http://dx.doi.org/10.30659/jua.v3i2.7961.
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Zakat is a financial system that is essential to create a balance between society, so as not to make the rich richer and vice versa.Zakat is an obligation for Muslims to get closer to Allah and to cleanse his property. While the tax is a mandatory contribution to the state charged to the public for the benefit of the government and the general public. Seeing the importance of zakat and tax as an instrument of income of a country, then the purpose of this study was to determine the legitimacy of a combination of zakat and taxation in Islamic law, and its application in Indonesia, whose population includes Muslims and non-Muslims. This research uses descriptive analysis approach and simultaneously inductive approach in explaining the rules of zakat and tax system and to clarify the differences between them, then explain the application of zakat and taxation in Indonesia, for increasing the zakat payment.
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Benaziez, Samia, and Rusni Hassan. "Requirements for the Success of Islamic Finance in Canada (Syarat dan Keperluan untuk Menjayakan Kewangan Islam di Kanada)." Journal of Islam in Asia (E-ISSN 2289-8077) 17, no. 2 (September 17, 2020): 182–97. http://dx.doi.org/10.31436/jia.v17i2.960.
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Islamic finance is at its first steps in Canada andthe financial institutions offering Islamic financial products face many problems performing their services. This paper has the objectives of evaluating the current situation of Islamic finance in Canada,to look into the issues and challenges faced by the financial institutions offering Islamic financial products as well as the conditions and requirements for the success of Islamic finance in Canada. This study is qualitative in nature using analysis of the literature such asjournals, books and official websites. The data is thoroughly analyzed in order to find the solutions for the success of Islamic finance in Canada. It is found that some Islamic financial products are offered in some non-bank financial institutions. These institutions face issues amongst which are the lack of capital, the taxation and legal barriers and especially competition next to the Canadian big banks. As a result, for the success of Islamic finance in Canada, it should be implemented in the big banks first. Keywords: Islamic finance, Canada, Islamic financial products, Non-bank financial institutions, Big banks, Competition. Abstrak Kewangan Islam di Kanada masih berada di tahap awal dan institusi kewangan yang menawarkan produk kewangan Islam menghadapi banyak masalah dalam melaksanakan perkhidmatan mereka. Objektif makalah ini adalah untuk menilai keadaan kewangan Islam semasa di Kanada, untuk melihat isu dan cabaran yang dihadapi oleh institusi kewangan yang menawarkan produk kewangan Islam serta syarat dan keperluan untuk kejayaan kewangan Islam di Kanada. Kajian ini bersifat kualitatif dengan menggunakan analisis literatur seperti jurnal, buku dan laman web rasmi. Data dianalisis secara menyeluruh untuk mencari jalan penyelesaian bagi memastikan kejayaan kewangan Islam di Kanada. Terdapat beberapa produk kewangan Islam yang ditawarkan di beberapa institusi kewangan bukan bank, namun institusi ini menghadapi masalah antaranya ialah kekurangan modal, masalah berkaitan cukai, halangan undang-undang sertahalangan yang paling utama adalah persaingan dengan bank-bank yang besar Kanada. Oleh yang demikian, bagi memastikan kejayaan kewangan Islam di Kanada, ia harus dilaksanakan di bank-bank besar terlebih dahulu. Kata Kunci: kewanganIslam, Kanada, produkkewangan Islam, institusikewanganbukan bank, bank-bank besar, persaingan.
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Blecher, Joel. "Scholars, Spice Traders, and Sultans: Arguing over the Alms-Tax in the Mamluk Era." Islamic Law and Society 27, no. 1-2 (February 20, 2020): 53–82. http://dx.doi.org/10.1163/15685195-00260a08.
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Abstract Amidst the politics of the Mamluk-era spice route, why did the standard-bearers of Islamic law routinely oppose the sultanate’s imposition of an alms-tax on merchandise (zakāt al-tijāra), despite the abundance of support for such a tax within the classical tradition of Islamic law? Rather than contending – as some modern scholars have – that prominent jurists developed loopholes that circumvented the original intent of the law to protect the wealthy and the ruling class, I argue that it was precisely the jurists’ careful defense of exemptions and exclusions that allowed them to define the essence of zakāt against forms of taxation they considered unlawful. By narrowing the scope of zakāt, jurists attempted to achieve a moral aim that went beyond the ritual purification of wealth: a limit on the sultanate’s otherwise arbitrary power to tax Muslims as it wished. In doing so, they alleviated some of the tax burden for spice merchants and camel herders alike.
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Al-Ttaffi, Lutfi Hassen Ali, Hijattulah Abdul-Jabbar, and Saeed Awadh Bin-Nashwan. "Does religious perspective influence tax non-compliance? Evidence from Yemen." International Journal of Ethics and Systems 37, no. 2 (January 25, 2021): 222–44. http://dx.doi.org/10.1108/ijoes-04-2020-0062.
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Purpose This paper aims to enhance the understanding of tax non-compliance behaviour of owner-managers of small and medium enterprises (SMEs) in Yemen. Drawing on the behavioural perspective and not on the Sharia per se, this study investigated the perspectives of Muslims towards government’s right to impose tax, summarised in three categories: forbidden, permissible and permissible under certain conditions. Design/methodology/approach This study was conducted using a self-administered survey to collect the required data from a sample of 500 SMEs in Yemen. Non-compliance is measured in terms of a single hypothetical tax scenario covering four types of tax situations. Yet, Muslims’ perspective towards the government’s right to impose tax was measured using the three perspectives stated above. Findings As the major finding, Muslims’ perspective towards taxation has a significant influence on their likely tax compliance behaviour. Specifically, the taxpayers who believed that tax is totally permissible (i.e. the government has the right to impose tax) were more compliant than those who believed that tax is totally forbidden. Furthermore, taxpayers’ non-compliance decisions are statistically related to tax rate and penalties. Practical implications The findings could serve as a useful input for taxation policy and strategy in Yemen. It is recommended that government should stress the importance of paying tax as a citizen’s obligation and also emphasise the religious legality of taxation, as it is used for public purposes. Originality/value This study differs from the existing literature in that its empirical investigation scrutinises the effect of citizens’ perspectives towards taxation on their non-compliance behaviour within the Islamic religion itself, particularly, in a typical Muslim community such as Yemen. The study is pioneer in adopting the views of different scholars on the government’s right to collect taxes based on three religious views (forbidden, permissible and permissible under certain conditions), which were used for measurement.
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Kamali, Mohamad Hashim. "Siyasah Shar'iyah or the Policies of Islamic Government." American Journal of Islam and Society 6, no. 1 (September 1, 1989): 59–80. http://dx.doi.org/10.35632/ajis.v6i1.2833.
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IntroductionSiyasah shar'iyah is a broad doctrine of Islamic law which authorizesthe ruler to determine the manner in which the Shari'ah should be administered.The ruler may accordingly take discretionary measures, enact rules and initiatepolicies as he deems are in the interest of good government, providedthat no substantive principle of the Shari'ah is violated thereby. The discretionarypowers of the ruler under siyasah shar'iyah are particularly extensivein the field of criminal law. The head of state and those who are incharge of public affairs, the 'ulu al amr, may thus decide on rules and proceduresas they deem appropriate in order to discover truth and to determineguilt. With regard to the substantive law of crimes, too, the 'ulu al amr havepowers to determine what behavior constitutes an offense and what punishmentis to be applied in each case.Many observers have expressed concern over the wide discretionarypowers that rulers and judges enjoy under siyasah shar'iyah. It is suggestedthat siyasah, as such, defies effective control, and it is open to abuse, whichwould ultimately undermine the ideals of justice under the rule of law. Oneobserver has thus considered siyasah as "direct negation of what may be regardedas the second essential implication of the idea of the rule of law in asecular system- namely, the principle that the sovereign must not possessany arbitrary power over the subject."According to another critic, siyasah has enabled the Islamic ruler to enactlegislation, especially in the field of criminal law, under the guise of "administrativeregulations." But in effect, the ruler enacted independent legislationin such areas as taxation, police matters, and the administration of justice,in general, which often interferred with, or severely circumscribed, theShari'ah.Penalties imposed at the discretion of the ruler or the judge are knownas ra'z'irat. As a branch of siyasah, ta'zir (lit. deterence) must differ accordingto the nature of the offense and the particular circumstances of the offender.The judge may thus determine the punishment of ta'zir in each caseaccording to his own observations and personal ijtihad. It has been suggestedthat the individual in such a system is exposed to official abuse against whichhe has no effective means of protecting himself ...
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Soliman, Mohamed Ahmed. "VIRTUAL REALITY AND THE ISLAMIC WATER SYSTEM IN CAIRO: CHALLENGES AND METHODS." International Journal of Architectural Research: ArchNet-IJAR 11, no. 3 (November 22, 2017): 78. http://dx.doi.org/10.26687/archnet-ijar.v11i3.1386.
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The Nile River plays a central role in Egyptians’ everyday life as the sustainable source of fresh water. Egyptians sought to regulate the Nile through the ages by inventing water systems suitable to monitor, measure and oversee the Nile’s behaviour. Because of the high value of water in Islam and its link to agriculture and taxation, Muslim rulers paid attention to water projects for irrigation and delivery to the cities throughout Islamic medieval dynasties. Islamic Cairo has a variety of water systems reacting to two major factors. First: westward shifting of the Nile, according to topographic inclination, causing the waves cutting into the west bank to precipitate in the east. As a result, the founders (Sultans al-Naser Mohamed and al-Ghoury in particular) always built new water intake towers in response to this phenomenon. Second: the relocation of the capital of Islamic Egypt to Cairo and later to the Citadel northeast resulting in constant displacement further away from the Nile bank. Whereas 'Amr ibn al-'As built al-Fustat (641 A.D) close to the Nile, al-'Asakar (750 CE) and al-Qata'i (876 A.D) were built northeast of al-Fustat away from the Nile. When al-Mu‘izz Ledin-Allah came to Egypt in 971 A.D, he blamed the commander of his army Jawhar al-Saqaly because of the city’s location far from the Nile. The citadel of Cairo is the farthest capital of Islamic Egypt, because of the appropriateness of the fortified location on al-Muqattam heaps inside the newly built Citadel. Chronicles and surviving buildings provide a full narrative and accounts of water systems of the Islamic capitals in Egypt. Such knowledge and information enable a credible virtual reality model to create a realistic output for the tangibles and intangibles of the water system using the virtual reality application.
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Petrusheva, Nada, and Metin Akiti. "MURABAHA-CONTEMPORARY BANKING TREND WITH LIMITED USAGE IN THE MACEDONIAN FINANCIAL SYSTEM." Knowledge International Journal 28, no. 1 (December 10, 2018): 147–51. http://dx.doi.org/10.35120/kij2801147p.
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Interest-free banking system also known as Islamic banking, represents a system, different from the conventional, with instruments and mechanisms which perform the same function as classic credit-saving instruments. An important feature that separates interest-free concept from standard banking is: to preserve the main Islamic principle, which is the exclusion of interest in every possible form. In that direction, Islamic bankers created instruments that fit the interest-free concept.Many of interest-free credit instruments, over the last years, are increasingly used also by commercial banks, especially trade-based instruments, of which the most widespread and most used is Murabaha. The philosophy of its functioning is the exclusion of interest and its replacement with trading-mode of operation so the bank will not approve classic loans that need to be repaid, upgraded with interest, as is the case with commercial loans. In contrast of that, the bank will buy the asset due to which costumers requires a loan, and then sells the same asset to the costumer with higher (mark-up) price. The price is known in advance and does not change until the end of contract. Thus, costumers are protected from the risk of changing interest rates, which otherwise can affect the amount of debt and their ability to repay, but also have greater foresight about total costs for the loan.The use is not limited only to Islamic banks. Murabaha is popular and can be found as a financial instrument also in commercial banks, beyond the borders of Islamic countries. However, the success in implementing such banking practices varies from state to state, due to a number of obstacles in the tax regulations. Especially, VAT (value added tax), which causes double taxation for Murabaha financial instrument.
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Alshech, Eli. "Islamic Law, Practice, and Legal Doctrine: Exempting the Poor from the Jizya Under the Ayyubids (1171-1250)." Islamic Law and Society 10, no. 3 (2003): 348–75. http://dx.doi.org/10.1163/156851903770227584.
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AbstractMost Sunnī scholars unequivocally exempt poor dhimmīs (mostly Christians and Jews under Muslim rule) from the duty to pay the Qur ān-imposed poll tax. Shāfi ī scholars, however, hold two conflicting opinions, one that exempts the poor and another that does not. This article examines the reality of destitute Jews living in Egypt and Syria under the Ayyubid regime in order to determine which of the two conflicting Shāfi ī rulings was applied in practice. Drawing on Geniza documents and literary sources, I argue that in the Ayyubid period no exemptions were offered to the poor whatsoever. This taxation policy, in my view, may reflect not an arbitrary choice made by local Ayyubid tax officials, but a conscious decision made by the Ayyubid rulers and the leading contemporary Shāfi ī scholars. The Ayyubids most likely appealed to the Shāfi ī religious authorities, pressing them to adopt the more stringent opinion, which would allow authorities to refrain from exempting the poor.
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Suprayitno, Eko, Radiah Abdul Kader, and Azhar Harun. "ZAKAT SEBAGAI PENGURANG PAJAK DAN PENGARUHNYA TERHADAP PENERIMAAN PAJAK DI SEMENANJUNG MALAYSIA." INFERENSI 7, no. 1 (June 1, 2013): 1. http://dx.doi.org/10.18326/infsl3.v7i1.1-28.
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This paper attempts to examine the role of zakat administration policy in Malaysia and its impact on the tax revenue in Malaysia Peninsula. Zakat administration issues pertaining to Islamic law but traditions remain under the jurisdiction of states. The practice of zakat is based on the Shariah while the taxation practice is based on the Malaysian Income Tax Act, established in 1967. Zakat is used as a fiscal policy tool whereby income tax payers were given 100 per cent rebates on zakat that they paid. The study uses panel data of states in Malaysia Peninsula and the analysis is done by using the fixed effect model. The study finds that zakat has a positif impact and significant on tax revenue.
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Mohamad, Nor Asiah. "A Study on the Socio-Economic Roles of Waqf Ahli (Family Waqf) in Promoting Family Security and a Sustainable Family Economy." IIUM Law Journal 26, no. 1 (June 30, 2018): 141. http://dx.doi.org/10.31436/iiumlj.v26i1.383.
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The challenges associated with financial stability and sustainability of family economy in the future are increasing. The most worrying is the problems facing the survivors after the death of their breadwinners. The majority of Muslims are rarely ready for this possibility and many lacks the knowledge on how to face such a situation. Some wrongly hold to the view that such preparation is not encouraged in Islam, against the principle of faraidh (estate planning) and an act of avoiding taxation and etc. In this article, it is shown that although waqf (Islamic endowment) appears in the form of charity but the outcomes are tremendous, encompassing family future investment and income generating. Employing a doctrinal analysis by looking into the available literatures on waqf, this article discusses how waqf ahli can contribute to family security and ensure a sustainable family economy. It is shown that Islamic endowment (waqf) aims to preserve and protect property for the use of the public; including spending on family. In addition, family waqf saves the heirs' property or business from fragmentation. Most importantly, it ensures sustainable family financial planning within the Shari‘ah framework while adding value to the existing family property or business.
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Rodin, Dede. "KHUMUS DALAM PERSPEKTIF MAZHAB JA’FARI." Economica: Jurnal Ekonomi Islam 4, no. 2 (May 4, 2016): 121. http://dx.doi.org/10.21580/economica.2013.4.2.783.
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<p><em>In Islamic tradition, khums (literally one fifth of gain) refers to a religious obligation to contribute one-fifth of a certain type of income to charity. The obligatory giving of alms is observed throughout Islam and is one of the Five Pillars of the faith, but the nature of the tax varies considerably between various Islamic traditions. Khums is paid on all items regarded as ganima. There are differing legal traditions within Islam about what constitutes ganima, and thus how far-reaching khums should be. In certain Shia traditions (Ja’fari) ganima is defined as the year’s profit, including all net income and wealth left over at the end of a year. Within these traditions, Khums involves an annual taxation of one-fifth of all gain, and can be compared to a tithe, or an income tax. Khums includes the zakat, or alms required as one of the five pillaras of Islam.</em></p><p><em>In Sunni tradition, ganima is defined as the spoils of war, and the tradition of paying khums has lapsed. However, Sunnis pay zakat, which involves a one-fortieth taxation of total wealth (and is more akin to a property tax). According to the hadiths of the Ahl al-Bayt Imams, the items that are eligible for khums are seven, and they are: (1) the profit or the surplus of income, (2) the legitimate wealth which is mixed with the illegitimate wealth, (3) mines and minerals, (4) the precious stones obtained from sea by diving, (5) treasures, (6) the land which a dhimmi kafir buys from a Muslim, and (7) the spoils of war.</em></p><p><em>in the Ja’fari school, khums should go to six people: Allah, His Messenger, The near relative of the Messenger (Ahlul-Bayt), Orphan, needy, the person who has fallen away from his home-town (and has no money to comeback to his own place).</em></p>
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Tarek Al-Kayed, Lama, Sharifah Raihan Syed Mohd Zain, and Jarita Duasa. "The relationship between capital structure and performance of Islamic banks." Journal of Islamic Accounting and Business Research 5, no. 2 (September 2, 2014): 158–81. http://dx.doi.org/10.1108/jiabr-04-2012-0024.
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Purpose – This paper aims to examine the effect of capital structure on Islamic banks’ (IBs) performance to provide guidance to finance managers for raising capital funds. As newcomers to the markets, IBs are facing a trade-off. They can either use high capital ratios which increase the soundness and safety of the bank and lower the required return by investors, or depend on deposits and Islamic bonds which are considered cheaper sources of funds due to their tax rebate. An IB’s management must carefully decide the appropriate mix of debt and equity, i.e. capital structure, to maximize the value of the bank. Design/methodology/approach – Using a sample of 85 IBs covering banking systems in 19 countries, the study uses a two-stage least squares method to examine the performance determinants of IBs to control the reverse causality from performance to capital structure. Findings – After control of the macroeconomic environment, financial market structure and taxation, results indicate that IBs’ performance (profitability) responds positively to an increase in equity (capital ratio). The result is consistent with the signaling theory which predicts that banks expected to have better performance credibly transmit this information through higher capital. Optimal capital structure results of the IBs found a non-monotonic U-shaped relationship between the capital-asset ratio and profitability, supporting the efficiency risk and franchise value hypotheses. Research limitations/implications – Due to limitations for market data, the study uses book accounting ratios. Future research where market data are available could use performance measures, such as Tobin’s Q in performance determinants models. Practical implications – The non-monotonic relationship found between IBs’ return on equity and capital ratios suggests that equity issuances for IBs’ with low capital ratios (lower than the turning point of 37.41 per cent) are expensive and have a negative effect on their profitability. On the other hand, managers of well-capitalized IBs (banks with capital ratios beyond 37.41 per cent) are advised to rely on equity when faced by a decision to raise capital, as the capital ratio starts to affect their profitability positively. Originality/value – Islamic banking literature has been silent on IBs’ capital structure and its relevance; this study will try to fill in the existent gap.
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Rumaningsih, Endang. "PROSPEK INTEGRASI ZAKAT DENGAN PAJAK." Economica: Jurnal Ekonomi Islam 1, no. 2 (May 18, 2016): 15. http://dx.doi.org/10.21580/economica.2010.1.2.839.
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<p>The integration between zakat with a tax is an idea that never disappears from the discourse of Islamic legal thought in Indonesia. The idea never appeared in the 1990s era was always warm when discussing efforts to the benefit and welfare of the community. Zakat and taxes have similar agenda so that efforts to unify both is very possible. In general, understanding of charity as God command and taxation as the state’s is still very strong orders. Merging these two elements for some people viewed as a strong relation (the relation between religion and state), even though Indonesia is not a nation built on the basis of religion. The imposition of taxes for Muslims is seen as an additional burden of ‘burdensome’. Taxes are regulated by the state and have the force of law. Its sanctions are always carried out by residents. While the charity which is commanded by God, the sanctions will be conducted later. So some Muslims bring to notice taxes rather than zakat, and sometimes zakat is not considered important. The dialogue to integrate zakat with the tax still requires a long process, because this issue is not only on philosophical terrain but also on the technical level. This study examines some possible merging of zakat and taxation as an instrument to build a prosperous and equitable society.</p>
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Senadjki, Abdelhak, and Jamalludin Sulaiman. "An empirical study on the influence of Islamic values in poverty alleviation." Journal of Islamic Accounting and Business Research 6, no. 2 (September 14, 2015): 222–43. http://dx.doi.org/10.1108/jiabr-05-2012-0027.
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Purpose – This study aims to shed some light on the roles of Islamic values and principles in encouraging households to enhance their livelihood and, therefore, alleviate their poverty. Design/methodology/approach – A structured and tested socio-economic questionnaire instrument was randomly distributed to 102 randomly selected households from the state of Penang in Malaysia. Data collected were analysed using one-way ANOVA tests. Findings – The results indicated that poverty can be fought with commitment, faith and guided principles based on faith. While the self-reliance degree remains indispensable in the development progress of individuals, communities and societies, dependence on others leads to disappointment and failure. Research limitations/implications – This study has its own limitations. First, the study did not consider the gender factor in the analysis. Second, only cash transfer (role of the government) was considered in the study, although other roles such as taxation and social services are probably equally important. Third, the discussion did not pay attention to how the proposed three constructs (Micro, Meso and Macro) are related. Lastly, as proposed by an anonymous reviewer, the present study did not take in consideration how Islamic philosophy perceives the share of responsibility to the three proposed constructs. Does Islam give similar weight to each of them? Practical implications – Sadakah and Waqf should be integrated with the financial systems to halt any misuse of the financial assistance offered to the poor. Social implications – Government assistance remains indispensable through providing the necessities of comfort and well-being to the hardcore poor such as housing, health-care facilities and cash transfer. Originality/value – This study enhances the understanding of how religious adherence and Islamic values influence households’ well-being and paves the way for further research on this crucial issue.
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Ahmad, Lmtiazuddin. "Economic Doctrines of Islam." American Journal of Islam and Society 14, no. 2 (July 1, 1997): 283–86. http://dx.doi.org/10.35632/ajis.v14i2.2244.
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Dr. Haq’s book belongs to the same group of issue-oriented studies in Islamiceconomics that Umar Chapra’s’ books do. However, unlike Chapra, who firstprovides a critical evaluation of the failed modem economic systems and thenestablishes the supremacy of Islam’s economic development strategy, IrfanUl Haq starts out with a comprehensive expository analysis of Islamic mnomicdoctrines. He then relies on extensive personal interpretation to derive andthen justify various policy prescriptions for the promotion of economic growthin an Islamic economy.The book contains four parts, which are divided into fourteen chapters. Thefirst five chapters in the first two parts discuss Islamic methodology and Islam’ssocial and political order. The book‘s major theme is included in the third andfourth parts where the author discusses most of the economic issues and policies.Since the controversial policy-oriented economic subjects are covered inthese parts, I will concentrate on the evaluation of these major economic subjects.These subjects include the proper role of the public sector, fard al-kifayahand its implications, interest-free financing, land ownership and tenure, taxation,poverty, employment, and the policies to provide economic essentials.Fard al-Kifayah and Its Implications for Economic PolicyIn discussing the principle of fard al-kifayah and the role of the Islamic statein providing public goods, Dr. Haq advocates a policy of nationalization ofresources as an appropriate policy for an Islamic state to follow. The same policyis extended elsewhere to include price fixing and direct control of the graintrade, and by implication, of all other commercial activity. Rather than providinga justification for such a policy on economic and Islamic grounds, he carriesout his entire discussion on the assumption that big government has the capacityand the means to solve all economic problems. This thesis, in my view, contradictsthe basic economic philosophy of Islam, which incorporates private initiativeand free enterprise with a primary focus on the individual as a decisionmaker and khurifah of God on earth. The author continues to overlook the factthat equity and efficiency are not complementruy, but often competitive. Anover-emphasis on the distributional justice of Islam creates an erroneous impressionthat in the Islamic worldview, economic growth and development are relegatedto a secondary role. This is not only incorrect, but it also contradicts thevery thesis of his book. Elsewhere I have elaborated on the Qur’anic view ofman and its implications for his economic role.land Ownership and TenureIn the beginning of chapter 10, the author correctly notes that Islam allowsland accumulation without any restrictions and recommends a balanced ...
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Mohd Yusof, Rosylin, Mejda Bahlous, and Roszaini Haniffa. "Rental rate as an alternative pricing for Islamic home financing." International Journal of Housing Markets and Analysis 9, no. 4 (October 3, 2016): 601–26. http://dx.doi.org/10.1108/ijhma-10-2015-0063.
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Purpose This paper aims to contribute to the banking and housing market literature by proposing an alternative measure of rate of return for Islamic banks that is based on the rental rate of the property. This alternative Islamic mortgage pricing mechanism could be adopted by Islamic banks as a replacement for mortgage rates if it is found to be independent from any form of interest rates as required by Islamic law. Design/methodology/approach By investigating the short run and long run dynamics between rental price index (RPI) and the proposed Islamic Rental Rate (RR-I) and, three selected macroeconomic indicators in the UK via autoregressive distributed lag model, the authors examine the link between RPI, RR-I and the real economy. Findings The findings provide evidence that while RPI in the UK is significantly related to three leading macroeconomic variables, namely, gross domestic product (GDP), real effective exchange rate and interest rates measures, while RR-I is only impacted by changes in GDP. More importantly, the authors show that there is no short or long run dynamics between the rental rate and any form of interest rates. Research limitations/implications This paper did not attempt to investigate the impact of the physical attributes of the rental property to formalize the model describing the relationship between RPI and RR-I. Also, other macroeconomic factors like household income growth, risk, house value growth rate and taxation could be included in future models. Practical implications As Rental Rate is not linked to the macroeconomic determinants, it is therefore more stable, resilient and sustainable and, at the same time, making the financing less risky for both parties, as they are less susceptible to economic vulnerabilities. Social implications Some calculations incorporating the proposed RR-I can also be extended to the pricing of products based on other contracts such as Tawarruq, Bai Bithaman Ajil or even Murabahah for a fairer and just pricing to both the banks and customers. Originality/value The results suggest that Islamic banks should consider incorporating the proposed rental rate (RR-I) when pricing their home financing products, as this will lead to less dependence on interest rates for benchmarking. In addition, using the proposed rental rate (RR-I) reduces the exposure to the subjective evaluation by property valuators and speculative macroeconomic elements.
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Supangat, Supangat. "KEBIJAKAN FISKAL NEGARA INDONESIA DALAM PERSPEKTIF EKONOMI ISLAM." Economica: Jurnal Ekonomi Islam 4, no. 2 (May 4, 2016): 91. http://dx.doi.org/10.21580/economica.2013.4.2.781.
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<p><em>As part of the mu</em><em>’</em><em>amalah discourse, fiscal policy in Islam is flexible and open to ijtihad. Texts related to fiscal policy can not be separated from the socio historical circumstances early Islamic society. Interpretation must use a contextual approach</em><em>, </em><em>although the mechanism may be different contextualisation. With the above formulation, this study found in common principles and objectives of the State</em><em>’</em><em>s fiscal policy in Indonesia. In fact, some types of taxes collected by the government is a reformulation of the tax that is applied in the early days of Islam. Thus, the system of fiscal policies during the State of Indonesia is still in the corridors of Shari</em><em>’</em><em>ah. However, implementation of such systems is still far from the expected. With the point of the equation, the government can implement fiscal policies of an Islamic state in accordance with the laws and culture of Indonesia. In this paper, the authors propose the idea to the admissibility of zakat and taxation as a source of state revenue.</em></p>
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Wartoyo, Wartoyo. "SISTEM REGULASI DAN KEBIJAKAN PERPAJAKAN DI INDONESIA PERSPEKTIF EKONOMI ISLAM." Profit : Jurnal Kajian Ekonomi dan Perbankan Syariah 3, no. 1 (June 25, 2019): 71–97. http://dx.doi.org/10.33650/profit.v3i1.541.
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Tax is a fiscal instrument in macroeconomic theory that can be used by the government to make funding (budgetary function) and regulation (regurelend function) in overcoming economic turmoil that always occurs in a country. The taxation system in Indonesia continues to change to adjust to the conditions and economic trends that occur in the world, so it is not surprising that there have been several tax reforms, including the birth of the Final PPH policy, Sunset Policy and Tax Amnesty. The goal is nothing but to adjust the needs of the rules to the real conditions that occur in the world economy and also in society so that state revenues from the tax sector can be fulfilled and in accordance with the targets mandated by the APBN. In Islamic economics itself tax is not something foreign, because it has been practiced since the beginning of Islamic rule where there were various kinds of taxes applied such as zakat, kharaj, khums, jizyah and so on. in the dialectic of taxes and alms there are two thoughts that arise, first is that which punishes taxes as zakat and second is that which still distinguishes the two. This difference has basically found a meeting point with the integration of zakat as a tax deduction that can be accepted by all levels of society in Indonesia.
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Hunwick, John. "Secular Power and Religious Authority in Muslim Society: the Case of Songhay." Journal of African History 37, no. 2 (July 1996): 175–94. http://dx.doi.org/10.1017/s0021853700035180.
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The relationship between political power and religious authority has been a delicate one in Muslim societies. On the one hand, governments may attempt to silence religious authorities; on the other, they may themselves succumb to revolutions in the name of religion. More often governments have attempted to co-opt religious authorities as allies in exercising control or have worked directly in a power-sharing arrangement with them. In Songhay, as in several other states of pre-colonial Sudanic Africa, a more subtle balance was achieved between the ruling estate and the diverse body of scholars, mystics and holymen who made up the religious estate. The askiyas of sixteenth-century Songhay, while exercising full political power, saw it in their interest to maintain harmonious relations with these men of religion. Gifts in cash and kind, including slaves, grants of land and privilege, especially exemption from taxation, as well as recognition of rights of intercession and sanctuary, ensured their moral support and spiritual services and, importantly, protected rulers from their curse. Such a symbiosis was important for the stability of a large and ethnically diverse empire like Songhay, especially as regards its conquered western reaches, which were ethnically non-Songhay and had a strong Islamic cultural tradition. This delicate balance was upset by the Sacdian conquest of Songhay in 1591. Despite Moroccan assertions of Islamic legitimacy, religious authorities in Timbuktu were unsupportive, and harsh measures against them dealt a lasting blow to the equilibrium which had prevailed under the askiyas.
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Sunarsih, Sunarsih, Slamet Haryono, and Fahmi Yahya. "Pengaruh Profitabilitas, Leverage, Corporate Governance, dan Ukuran Perusahaan Terhadap Tax Avoidance (Studi Kasus Pada Perusahaan Yang Tercatat Di Jakarta Islamic Index Tahun 2012-2016)." INFERENSI: Jurnal Penelitian Sosial Keagamaan 13, no. 1 (July 20, 2019): 127–48. http://dx.doi.org/10.18326/infsl3.v13i1.127-148.
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Taxes are a major contribution on state revenues which will then be used for national financing and development. However, taxpayers’ compliance level is still low. There are deviations made by the taxpayer in reducing taxes, in order not to get a high tax. One of them by tax avoidance. Tax avoidance is the process of controlling actions to avoid the consequences of improper taxation and is legal. The purpose of this research is to explain the effect of profitability, leverage, corporate governance, and firm size to tax avoidance. The researcher take a case study on a company listed on the Jakarta Islamic Index (JII) in 2012 until 2016. The sample are 65 samples consisting of 13 companies. Regression used in this research is panel data regression, where selected Fixed Effect as the right regression model. In this regression, the result shows that profitability as measured by ROA and firm size as measured by total asset have significant negative effect to tax avoidance, and leverage as measured by DER has a significant positive effect on tax avoidance. While corporate governance as measured by independent commissioners and audit committee does not affect tax avoidance
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Sukmalia, Dwita, Ida Yuliana Saputri, Nurul Hak, and Amimah Oktarina. "Pemikiran Ibnu Khaldun Tentang Kebijakan Fiskal Khusus Pajak Dan Relevansinya Dalam Menghadapi Resesi Di Indonesia." Jurnal BAABU AL-ILMI: Ekonomi dan Perbankan Syariah 6, no. 1 (April 30, 2021): 90. http://dx.doi.org/10.29300/ba.v6i1.4298.
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Ibn Khaldun is an Islamic scholar with various works, especially in the muqaddimah book which explains the principles of taxation. According to Ibn Khaldun, the imposition of low taxes on the people will make the people more incentivized to do business and develop the business world. On the other hand, the imposition of high taxes on the people will be reluctant to pay taxes so that the production done by the people will decrease and affect the tax revenue itself. The purpose of this study was to determine the relationship between Ibn Khaldun's theory and the current downturn in economic growth. This research method is library research research with a descriptive qualitative approach with the data source used is secondary data consisting of the book "muqaddimah" and other theories derived from books, journals, and official websites that are relevant to the research. The data that has been collected is analyzed using the Content Analysis Method. This study concludes that Ibn Khaldun's thoughts are very relevant when applied in facing the recession in Indonesia.
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Lukman, Burhanuddin, and Saba’ Radwan Jamal Elatrash. "The goods and services tax (GST) on takāful products: a critical Sharīʿah appraisal." ISRA International Journal of Islamic Finance 9, no. 2 (December 4, 2017): 205–9. http://dx.doi.org/10.1108/ijif-08-2017-0027.
Full textAbstract:
Purpose This paper aims to ascertain the Sharīʿah (Islamic law) stance on the imposition of goods and services tax (GST) on tabarruʿ-based takāful (donation-based Islamic insurance) products in Malaysia. The paper aims to do so by analysing the philosophy, purposes and structure of GST on takāful products and comparing the imposition of GST on tabarruʿ-based takāful with its imposition on conventional insurance while probing into the Sharīʿah texts and opinions of classical and contemporary scholars about taxation in Islam. Design/methodology/approach The paper uses a qualitative research methodology. In addition to the literature and text on websites, the information on how GST is applied in practice is also obtained through interviews, discussions and documents from takāful operators. To determine the Sharīʿah position on GST, reference has been made to classical and contemporary Sharīʿah literature, including local and international Sharīʿah advisory bodies’ resolutions and standards. Findings This study finds that a strict interpretation of Sharīʿah does not allow for the imposition of GST; however, there is still room for the government to justify it using a broader interpretation of maṣlaḥah (public interest). Takāful has become a need for the society and is subscribed to by all income groups, and not only by the rich. Hence, the government should consider exempting takāful products from GST. The basis of tabarruʿ in takāful does not provide conclusive Sharīʿah evidence for takāful to be exempted from GST. Originality/value This research paves the way for the industry to propose further measures on GST for takāful products such as the exemption of GST on the tabarruʿ amount or imposition of a zero rate of GST on the relevant takāful fees and charges that are currently burdensome to consumers.
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Munawar, Zaid. "Tanah, Otoritas Politik, dan Stabilitas Ekonomi Kerajaan Mataram Islam (1613-1645 M)." Diakronika 21, no. 1 (June 30, 2021): 1–13. http://dx.doi.org/10.24036/diakronika/vol21-iss1/163.
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This article examines issues of land, political authority, and economic stability of the Islamic Mataram Kingdom during the reign of Sultan Agung (1613-1645 AD). This study uses the historical method by carrying out steps such as topic selection, heuristics, verification, interpretation and historiography. This research shows that Sultan Agung as a king has full authority over land management in the entire territory of the Islamic Mataram Kingdom. So that the land can be managed properly, the Sultan Agung divides the land based on concentric circles of the territory, both in the territory of the Negara Agung, Mancanegara, and Pasisiran in order to build a community under the auspices of his government. There are three types of land that are known in this division, namely narawita land (land in the core area of the kingdom which is used as agricultural land and plantations to produce rice, flowers, grass, oil, etc. for palace purposes), lungguh/apanage land (land in the territory of the Negara Agung, Mancanegara, and Pasisiran distributed to the nobles and royal officials as land salaries for their role in the continuity of the administration, and perdikan land (village land in which there are royal sacred buildings, such as places of worship, tombs, and the like, which are exempt from taxation as given to religious leaders (ulama and penghulu). These lands are mainly managed for agriculture as the most important economic source for the kingdom. The maximization of land management is able to have a positive impact on economic stability and governance in the Islamic Mataram Kingdom.
Keywords: Land, Political Authority, Economic Stability, Islamic Mataram Kingdom
Artikel ini bertujuan mengkaji tentang persoalan tanah, otoritas politik, dan stabilitas ekonomi Kerajaan Mataram Islam pada masa kekuasaaan Sultan Agung (1613-1645 M). Penelitian ini menggunakan metode sejarah dengan melakukan langkah-langkah seperti pemilihan topik, heuristik, verifikasi, interpretasi dan historiografi. Hasil penelitian menunjukkan bahwa Sultan Agung sebagai seorang raja memiliki otoritas penuh terhadap pengelolaan tanah di seluruh wilayah kekuasaan Kerajaan Mataram Islam. Agar tanah tersebut dapat dikelola dengan baik, maka Sultan Agung membagi tanah berdasarkan lingkaran konsentris wilayah kekuasaan, baik di wilayah Negara Agung, Mancanegara maupun Pasisiran demi membangun masyarakat yang berada dalam naungan pemerintahannya. Ada tiga jenis tanah yang dikenal dalam pembagian tersebut, yaitu tanah narawita (tanah di wilayah inti kerajaan yang digunakan sebagai tanah pertanian dan perkebunan agar menghasilkan padi, bunga, rumput, minyak, dan lain-lain untuk keperluan istana), tanah lungguh/apanage (tanah di wilayah Negara Agung, Mancanegara dan Pasisiran yang didistribusikan kepada para bangsawan dan pejabat tinggi kerajaan sebagai tanah gaji atas perannya terhadap kelangsungan jalannya pemerintahan), dan tanah perdikan (tanah desa yang di dalamnya terdapat bangunan suci kerajaan, seperti tempat ibadah, makam, dan semacamnya, yang dibebaskan dari pungutan pajak sebagaimana diberikan kepada para tokoh agama (ulama dan penghulu). Tanah-tanah tersebut dikelola terutama untuk pertanian sebagai sumber ekonomi terpenting bagi kerajaan. Maksimalisasi pengelolaan tanah tersebut mampu memberikan dampak positif bagi stabilitas ekonomi dan pemerintahan di Kerajaan Mataram Islam.
Kata Kunci: Tanah, Otoritas Politik, Stabilitas Ekonomi, Kerajaan Mataram Islam
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Amri, Hoirul, and Muhammad Jauhari. "MODEL PENGELOLAAN FISKAL RASUL SAW DALAM KONTEKS PENGELOLAAN FISKAL KOTA PALEMBANG." BALANCE Jurnal Akuntansi dan Bisnis 3, no. 2 (November 1, 2018): 392. http://dx.doi.org/10.32502/jab.v3i2.1257.
Full textAbstract:
This study aims to find out the model of the fiscal application of Rasul SAW in the context of the fiscal management of Palembang City Province. This research was conducted in two stages. Phase I, namely describing Rasul SAW's fiscal management model and implemented it in the management of the fiscal city of Palembang and its implications for the level of security and welfare of the people of Palembang city. Phase II, namely the development of Rasul SAW's fiscal management model, became the model rule for the fiscal management of Palembang city. Fiscal management includes the use of government spending, taxation, and loans to achieve the desired goals in building a country, fiscal management becomes the main tool for the state for welfare, this management is applied by the Prophet Muhammad in Medina. The Prophet Muhammad's fiscal resources consisted of Zakat, Ghanimah, Kharaj, Jizyah, and other sources burupa Usyir. The position of fiscal management plays an important role in the Islamic economic system compared to monetary management, with the prohibition on usury and obligations regarding the importance of fiscal position compared to monetary. The economic and fiscal system applied to the government of Palembang City refers to the policies contained in the Pancasila, the Act, and government regulations both the central government and regional government regulations. The fiscal becomes regional original income (PAD) sourced from; (1) Results of regional tax collection; (2) Regional retreat; (3) Management of regional wealth 4) and others.