In order to run the affairs of the state and the people every state needs funds. Under capitalism these funds are mainly raised through interests and direct and indirect taxes. Also in Islam, the State has to finance its affairs and responsibilities from the State Treasury, the Bayt al-Mal (Bait ul-Mal). In order for the State to perform the duty placed on it by the Shari'ah, the Shari’ gave the State the authority to collect certain revenues. Sheikh Ata’ bin Khalil Abu Al-Rashtah states in his book, Economic Crises, the following: “The constant revenues of the Bayt al-Mal are “all of war booties, head tax (jizya), land tax (ushr, kharaj), a fifth of the buried treasure (rikaz), State properties, as well as customs tax taken from the covenanters and belligerents, funds resulting from the public property, inheritance funds of those that have no heir, illicit funds taken from governors and State officials, illegally earned funds, funds of fines, funds of apostates, and taxes…” (more…)
