Culture

Taxation is allowed “under conditions”, says Adhaalath Party

14 Aug 2011, 10:24 AM

Ahmed Nazeer

Adhaalath Party has today claimed that taxation us allowed in Islam but “under conditions”, stating that there were “some issues” with proposed taxation regulation in the Maldives.

In a press release issued today detailing the party’s views on taxation, the Adhaalath Party said that some scholars believed that taxation was haram and some that it was was halal.

The party said that according to Islamic jurisprudence and economists, tax was something withdrawn from citizens without their consent and without specific profit in return.

Taxation would be allowed ‘’only in exceptional situations and it has to be stopped when the situation returns to normal’’, the party said.

‘’Thinking of taxation economically, it could be taken from the people permanently as a source of income to run the state, but under Islam tax can be taken if the state reaches a certain situation,’’ the Adhaalath Party said.

The Hanafi, Maliki, hanbali and Shafi’e sects of Islam allowed for taxation, said the Adhaalath Party, adding that there were scholars who believed that taxation was haram because it was something taken by force.

The party acknowledged that it would be “very difficult” to cover the expenditure of the state only by using the amount the state received through zakat.

However, the party urged that any money earned by taxation was to be shared justly and divided to fulfill the needs of all citizens.

‘’A tax has to be taken from the amount left after fulfilling the basic needs of the tax payers,’’ the party said. ‘’If there was nothing left after completing their basic needs, tax should not be taken from them.’’

Finance Minister Ahmed Inaz has previously stated that the proposed income tax will only affect those earning more than Rf 30,000 (US$2000) a month.

The Adhaalath Party claimed the Import Duty tax had to be stopped and said it would be more beneficial to replace this with a business profit tax, as this would be collected after the business sold the product and not before.

‘’It is a  burden for small and medium businesses to pay a heavy import duty before a product has been sold,’’ the Adhaalath Party said.

The party also called on the government to abolish “useless political appointees”and to “introduce a Zakat Act”.

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