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Sunday, July 9, 2023
Taha: Lowering The Prices Of Zakāt
Ahmed E. Taha (Pepperdine; Google Scholar), Lowering the Prices of Zakāt, 41 Va. Tax Rev. 289 (2022):
Not too long ago there was elevated curiosity in wealth taxes, which tax the worth of private property. Though wealth taxes have benefits relative to revenue taxes, wealth taxes can also create problematic administrative and compliance points. This text examines an almost 1400-year-old wealth tax: zakāt, which is a key element of an Islamic socio-economic system and a foremost type of worship.
The article examines lots of the major conventional zakāt calculation, assortment, and distribution practices. It argues that these practices had been according to largely minimizing the executive and compliance prices of the zakāt system within the agrarian and mercantile economic system of seventh century CE Arabia, generally even on the expense of fairness. Due to dramatic financial, monetary, and societal adjustments over the past 1400 years, nonetheless, lots of the administrative and compliance points relating to zakāt have modified drastically. Consequently, the required tradeoffs between fairness and administrative and compliance prices have been altered as properly. This arguably impacts how zakāt must be calculated, collected, and distributed right this moment.
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https://taxprof.typepad.com/taxprof_blog/2023/07/reducing-the-costs-of-zakpercentC4percent81t.html
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