2. Contents
● Zakkah
● Public Ownership
● Currency
● Interest Based Economy & Islam
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3. Zakkah
● A system to facilitate rotation of money
from rich to poor through concept of
Zakkah (not like taxes that both poor
and rich pays)
● There is no GST, Income Tax etc., (or
alike)in Islam
– Income Tax is on earning, GST is on
purchasing
– Zakkah is on savings 3
4. Evidences
● Ad-Darimi, Ahmed and Abu ‘Ubayd
reported on the authority of ‘Uqbah ibn
‘Amir that he heard the Messenger of
Allah (saw) say :
– “The tax-collector will not enter
Paradise.”
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5. Some Taxes: Beyond
Today's talk
● Al-Kharaj
● Al-Jizya
● Al-Ushr
● Import and export duty on foreign
traders
● Etc.,
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7. Public Ownership
● Defined concepts of ownership that
stopped rich people from becoming
richer only while making poor people
becoming more poorer
● Vital commodities, water, source of fuel,
and mineral wealth are in sharing and
can't be owned by few persons
(privatization can't take place in basic
needs i.e., rich/poor depends on them)
● Land reforms favoring poor and
stopping rich from exploiting poor 7
8. Evidences
● Messenger SAW of Allah said (Abu Dawud)
– "The people are partners in three things: water, green
pastures and fire (energy)."
● Messenger SAW of Allah said (Al-Bukhari)
– “Whoever has land let him plant upon it or grant it to his
brother. If he declined let him hold his land.”
● Messenger SAW of Allah said (Muslim)
– “Forbade a rent or a share be taken for the land.”
● Messenger SAW of Allah said (Sunan of An-Nisai)
– “The Messenger of Allah forbade leasing the land.We
said, ‘O Prophet of Allah, can we then lease it for
some of the grain.” He said, ‘No.’ We said, ‘We used
to lease it for the straw.’ He said, ‘No.’We said, ‘We
used to lease it in return of that on the irrigating 8
Rabee’a.’ He said, ‘No, plant it or grant it to your
brother.’”
9. Currency
● Concept of currency to be from gold and silver so that
no one exploit others
● Controls Inflation, more transparency
● Example
– Consider state of 3 people with each 100 units of
currency
– The person from govt. Wants to buy a product
costing 150 units
– He makes a future transaction with state over a
contract and receives 100 unit by printing paper
money
– Now he buys product of 150 units, supply and
demand is disturbed now
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– Inflation would take place and prices would go higher
for products
10. Statistics
● Gap has increased a lot in the last 100 years
due to absence of Islamic economics
Year Poor: Rich ratio
1820 3:1
1913 11:1
1950 35:1
1973 44:1
1992 72:1
● Microsoft CEO Bill Gates has more wealth
than the bottom 45 percent of American
households combined 10
11. Interest Based Economy
& Islam
● Before Banking
● Capitalist Western Banking
● Capitalist Banking In Muslim World
● Recent capitalist attempt in the Muslim
World
● Real Islamic Banking
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12. Banking System
● Before Banking System
Investor Skilled labour
Investor
Entrepreneur
Investor
Trader
Investor
Businessman
Investor
Investor Inventor
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13. Banking System
● Western Capitalist Banking
Investor Skilled labour
Investor
Entrepreneur
Investor
20%
Trader
12% Interest
Investor Bank
Profit
Businessman
Investor Bank’s Profit = (20-12)%
Investor Inventor
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14. Banking System
● Capitalist Banking in the Muslim World
Investor Skilled labour
Investor
Entrepreneur
Investor
Trader
Investor
12% 20% Businessman
Investor Profit Bank
Interest
Bank’s Profit = (20-12)%
Investor Inventor
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15. Banking System
● Islamic Banking under a Capitalist State
Investor Skilled labour
Islamic
Investor Banking
$ Entrepreneur
$
$
Investor
Trader
Investor
12% 20% Businessman
Investor Profit Bank
Interest
Bank’s Profit = (20-12)%
Investor Inventor
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16. Banking System
● Islamic Banking under Islamic State
Investor
Trader
Investor
Businessman
Investor
Investor Inventor
• Only introduces the two • Bank is not a part of the
parties and takes financial contract
service charges for its Bank • Bank is only a financial
effort adviser and facilitator similar
to that of a property dealer 16
17. Evidences
● “O you who believe! Squander not your
wealth among yourselves in vanity,
except it may be a trade by mutual
consent.” [An-Nisa: 29].
● “That is because they say: Selling is just
like usury. Whereas Allah permitted
selling and prohibited usury.” [Al-
Baqarah: 275]
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18. Patents & Copyrights
● According to Islam the buyer after buying a thing
becomes the rightful owner of its rights
● A company during selling something cannot dictate
conditions, which are not from Qur’an and Sunnah
● Sahih Al-Bukhari and Sahih Al-Muslim, and books of
old Muslims Scientist were never copyrighted. Had it
been so, the west would still be in dark ages
● Copyright and patent laws are a big hurdle in
dissemination of knowledge and in the welfare of the
humanity.
● Copyright laws are a tool of scientific colonization of
the west
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19. Evidences
● The hoarding of gold and silver was prohibited explicitly in the Qur’an. Allah (SWT) says: “And let those
who hoard gold and silver and do not spend them in the way of Allah know that a severe and painful
punishment is awaiting them.” [At-Tauba: 34] This warning of severe punishment for those who hoard
gold and silver serves as a clear evidence that the Law Giver has decisively ordered us to refrain from doing
so; it is therefore forbidden to hoard gold and silver.
● Islam prohibited pricing absolutely, due to what Imam Ahmad narrated from Anas who said: “Prices
increased at the time of the Messenger of Allah , so they said, O Messenger of Allah, we wish would
you price (fix the prices). He said: “Indeed Allah is the Creator, the holder (Qabidh), the Open-handed
(Basit), the Provider (Raziq), the Pricer (who fixes prices); and I wish I will meet Allah and nobody
demands (complains) of me for unjust act I did against him, neither in blood or property.” Also Abu
Dawud narrated from Abu Huraira, he said, “A man came and said, O Messenger of Allah, fix prices. He
said: “Rather Allah reduces and increases.”
● S’aid ibn Al-Musayyab narrated from Mu’ammar ibn Abdullah Al-‘Adawi in Bukhari that the Prophet (saw)
said: “No one monopolises except the wrongdoer.” Al-Athram narrated from Abu Umamah, he said:
“The Messenger of Allah (saw) forbade that a foodstuff be monopolised”. And Muslim narrated through
his chain of narrators from S’aid ibn Al- Musayyab that Mu’ammar said: “The Messenger of Allah (saw)
said: “Whoever monopolised is a wrongdoer.”’ Monopoly is prohibited (Haram) in all things without a
difference between the human foodstuff or animals foodstuff, a foodstuff or not, and of the people’s
necessities or luxuries. This is because the linguistic meaning of the word monopolised (Ihtakara) is to
compile a thing in its absolute sense (without specification). The word monopolised did not come in the
meaning of compiling the foodstuff or the people’s necessities, rather compiling the thing, so it should not be
confined to other than its linguistic meaning.
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