Taxes Islamic World

About Taxes Islamic World

Islamic taxation is based on two main taxes. Zakat is a mandatory charitable contribution, typically 2.5 percent of accumulated wealth, paid annually by Muslims. Zakat is one of the Five Pillars of Islam. Jizya was a per capita tax on non Muslims in Islamic states, exempting them from military service. Jizya was abolished in the Ottoman Empire in 1855. Kharaj was a land tax on agricultural land. Modern Islamic countries generally use conventional tax systems alongside or instead of traditional Islamic taxes. Saudi Arabia and some Gulf states do not levy income tax, relying on oil revenue. Some countries, including Pakistan and Sudan, have attempted to implement full Islamic tax systems with limited success. Zakat collection agencies exist in most Muslim countries.