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Taxes in a non-Muslim Countries

Answered as per Hanafi Fiqh by Mahmoodiyah

Question:

I am employed with the South African Revenue Services (SARS). My job entails auditing the public to ensure compliance with tax laws. Periodically I audit Muslim individuals or other legal bodies controlled by them.  Whilst auditing them the at times approach me privately and request that I overlook their non-compliance (at times a bribe is even offered).  They provide reasons which in their opinion justifies non-compliance, such as; they feel that as a non Muslim government benefits from such payments, such money could be better utilised by themselves by “donating”  it to Islamic organisations.  I have never succumbed to such requests, as I feel that everyone in this country should pay equal taxes, as the government (although with some corruption) has provided us with resources, and does not discriminate us Muslims.  I also feel that such people generally live exorbitant lifestyles, and could donate monies for Islamic benefit by reducing their lavish lifestyles.  Over the past few years SARS has revolutionised, and we all have benefited from this, as government has levied lower tax rates for all (particularly the poorer), and provided many other benefits.

1.  I am confused and do not know if I am correct in making such reasoning.

2.  Should all Muslims pay full taxes in this country?

3.  Also could you elaborate on the rules of Jizyah, could you also refer me to some literature in this respect?

Please give me as much detail as possible.

Jazakallah for your time.


Answer:

 

                  

 

It is the duty of the government to benefit the public.  The government must arrange for the easy living and the protection of their citizens.  They will also have to solve their citizens’ difficulties.

It will be permissible for the government to demand taxes from its citizens in order to fulfil these duties.  However, it should be done with justice and equality.

Taxes should not be so high that it harms the public in such a way that their earnings are spent on taxes and nothing is left for them to fulfil the basic needs.  If the government sets such a tax rate that is just then it is the duty of every citizen to pay the taxes even if the citizen is a Muslim and the ruler is a non-Muslim because the Muslim citizen takes benefit of all the amenities provided by the government too.

And Allah Ta’ala knows best

Mufti Muhammad Ashraf

Darul Iftaa

Jameah Mahmoodiyah

Springs

                  

19 July 2005

12 Jumaadul Ukhraa 1426

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