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Zakat/Tax On Industrial Profits
Assalamualaikum!
Big industrialists often make huge profits. This leads to extreme income inequality and this has detrimental effects on society.
As per Islamic economic directives, how much can governments tax/ extract Zakat from the industrial profits? Can it be 40-45% as is in most western social democracies?
Jazak Allah.
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3 Replies
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Zakat/Tax On Industrial Profits
updated 1 year, 1 month ago
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Replies
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According to shariah the tax on produce, agricultural or industrial, is 5 percent, if both money and work is involved, and 10 percent of money or work is involved. The government has no right to impose more tax. But can make a request for more donation if required.
It is not objectionable if a person or company earns wealth by fair means, no matter how much they earn, if they pay zakat.
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Can a democratic state on its own initiative introduce strong labor laws:
(Including but not limited to unionization, the right to form co operatives, minimum wage growth etc.)?
Because as Ghamidi Saheb says that the basic responsibility of the state should be to protect the lives and rights of its citizens without any discrimination. So from this perspective, can such laws be introduced?
Alongside other benefits for general population, it will help curb excessive inequality that is having detrimental effects on people’s lives and economies.
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Any law can be made to protect the people’s rights.
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