The bait-ul-maal is a unique institute which was established for the economic prosperity of the people. As we all know in the Islamic system of life sovereignty belongs to Allah and man is His vicegerent on earth. Similarly the same concept applies to Bait-ul-maal, where Allah is sole master of this treasury while the caliphs are only the trustee of Bait-ul-Maal. In this sense the concept of Bait-ul-maal is different from the concept of public exchequer in un-Islamic systems.
In an Islamic state Bait-ul-maal is Safeguarded and expenditures from it is made in the sense that it is a trust. Definition So how can we define bait-ul-maal? It is the place which is designed for keeping the spoils of war, charity, land tax and Jizyah (the tax which a free non-Muslim pays in Muslim countries in return for his protection), and this money should be in the hands of the caliph or a Muslim ruler who spends it in what Allaah has ordained. Historically, it was a financial institution responsible for the administration of taxes in Islamic states, particularly in the early Islamic Caliphate.
It served as a royal treasury for the caliphs, managing personal finances and government expenditures. Further, it administered distributions of zakah revenues for public works. History Bayt al-mal was the department that dealt with the revenues and all other economic matters of the state. In the time of Muhammad (SAW) there was no permanent Bait-ul-Mal or public treasury. Whatever revenues or other amounts were received were distributed immediately. There were no salaries to be paid, and there was no state expenditure.
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Similarly Prophet Muhammad, (pbuh), established the common brotherhood of Muslims soon after the Hijrah to Medina from Mecca. Each resident of Medina became a helper (ansar) to each individual who migrated with Prophet Muhammad (pbuh). The rich Muslims took charge of the poor ones and soon the economic disparity was removed with the interdependency. Hence the need for the treasury at public level was not felt. Abdullah ibn Abbas (R. A) states: “For me to fulfil the necessities of a Muslim family for a month or for a week or whatever period of time Allah pleases is more beloved to me than performing hajj after hajj.
Buying a utensil for even a daaniq (one-sixth of a dirham) and giving it to my brother as a gift for the pleasure of Allah is more beloved to me than spending a dinar in the path of Allah. ” - Abu Nu’aym in Hilya 1:328 But It wont be right to say that the concept of Bait-ul-maal didn’t exist at the time of last prophecy. The Prophet, sallallaahu 'alayhi wa sallam, used to have trustworthy people who kept these assets and they divided them with his order on those who deserved them. The mosque was the place in which the assets and belongings were exposed and the Prophet, sallallaahu 'alayhi wa sallam, would divide them by himself.
However, the camels and other cattle remained in the folds until it was time for their division. Even in the time of Abu Bakr there was not treasury. Abu Bakr earmarked a house where all money was kept on receipt. As all money was distributed immediately the treasury generally remained locked up. It was reported that at the time of the death of Abu Bakr there was only one dirham in the public treasury. After the death of 1st caliph things changes. Establishment of Bait-ul-maal In the time of Umar (R. A) things changed. With the extension in conquests money came in larger quantities, Umar also allowed salaries to men fighting in the army.
Abu Huraira who was the Governor of Bahrain sent a revenue of five hundred thousand dirhams. Umar summoned a meeting of his Consultative Assembly and sought the opinion of the Companions about the disposal of the money. Uthman ibn Affan advised that the amount should be kept for future needs. Walid bin Hisham suggested that like the Byzantines separate departments of Treasury and Accounts should be set up. After consulting the Companions Umar (R. A) decided to establish the Central Treasury at Madinah. Abdullah bin Arqam was appointed as the Treasury Officer. He was assisted by Abdur Rahman bin Awf and Muiqib.
A separate Accounts Department was also set up and it was required to maintain record of all that was spent. Later provincial treasuries were set up in the provinces. After meeting the local expenditure the provincial treasuries were required to remit the surplus amount to the central treasury at Madinah. According to Yaqubi the salaries and stipends charged to the central treasury amounted to over 30 million dirhams. Whereas a separate building was constructed for the royal treasury by the name bait-u-maal, which in large cities was guarded by as many as 400 guards.
Finally in Hazart Umer’s regime the concept of Bait-ul-maal was implemented and strengthened. Zakat This is the most important source of revenue of the Bait-ul-maal. It is different from the other revenues because its collection, in regards of with its collected amounts and in regards with its spending. Islam restricted the sources from where Zakat is collected, it is collected from the wealth of Muslims only and not from the non-Muslims. It is, as well, not a general tax, rather one of the pillars of Islam. Besides this, paying Zakat achieves a spiritual value, like the prayer, fasting and the hajj.
Holy Quran and Prophet (pbuh) has laid a great emphasis on the duty of paying sadqats. Once the Messenger of Allah (SAW) sent Mu'az to Yemen and said to him: "Inform them that Allah obliged Sadaqah upon their wealth that is taken from their rich and given to their poor. " The Holy Prophet (S. A. W) fixed the rate on possession of wealth above a certain level and enforce its collection. There are different rates of Zakat on various properties such as zakat on 7. 5tolas of Gold, 52. 5tolas of silver etc. It is, as well, not a general tax, rather one of the pillars of Islam so of great importance to Muslim society.
Jizyah Jizyah is derived from ‘Jaza’ which means ‘recompense’ or ‘compensation’. It is a per capita tax levied on a section of an Islamic state's non-Muslim citizens. From the point of view of the Muslim rulers, jizya was a material proof of the non-Muslims' acceptance of subjection to the state and its lawsIn return, non-Muslim citizens were permitted to practice their faith, to enjoy a measure of communal autonomy, to be entitled to the Muslim state's protection from outside aggression, and to be exempted from military service and the zakat taxes obligatory upon Muslim citizens.
Allah said “Fight, with those from among the people of the book who do not believe in Allah nor in the Last Day; who do not make unlawful that which Allah and His Messenger has made unlawful and adopt the right way as their way. (Fight with them) until they pay Jazia with their own hands and are humbled. ” [9:30] Kharaj Land of the conquered terrorities left by the reigning Caliph in the possession of the subjugated unbelievers and land of thoses countries which accepted the sovereignty of Islamic state by a treaty of peace are called kharaji.
The revenue, tax, rent, rate, lease, produce, income, wages etc collected from these land owners is called kaharaj. This policy of collection was first adopted my Hazart Umer r. a but sanction for the levy of Kharaj is also found from the practice of the Prophet of Islam who gave the conquered lands of Khaiber to the Jews (who were previous owners of these lands) on the agreement that they would pay half of the produce to the Islamic State. Now I will call upon Sajjad Naqwi to guide you through rest of the sources of revenue of house of treasury. Sadqat
Linguistically, sadaqah is derived from the root sadq or sidq, which means "to speak the truth, to be sincere. " It can also mean, "candor and efficiency. " Quran and Hadith laid emphasis on sadqat. It finds its origin in God's command to: “Take sadaqah (charity) from their property in order to purify and sanctify them. " (Qur'an at-Taubah:103) There are two main types 1- Sadqat-i-Wajiba(obligatory Sadqat) 2-Sadqat-i-Nafla( supplementary sadqat) Sadqat-i-Wajiba is the offering of Zakat while Sadqat-i-Nafla is distribution of charity according to your will. Faie
If overawed by the might of the Muslim army, the infidel forces runway without a fight leaving behind goods and property or after victory in battle the Muslim leaves the land of the unbelievers in their possession and ownership subject to a fixed tax, or a Kharaj or Jizyah all this gain sum up to FAIE. In this sense even kharaj and Jizyah become a kind of Faie. The Holy Quran declared the faie revenues as the right of bait-ul-maal. Faie is distributed amongst the soilders of Islam but instead is kept for the poor and needy. Orders regarding the Faie have beed issued in Sura Al-Hashr: Whatever Allah restorted to His Messenger from the people of the habitants, belongs to Allah and the Messenger and the kinsfolk and the orphans and the needy and the wayfarers, so that it does not remain circulating among your rich people only. Take whatever you Messenger gives you, and refrain from whatever he forbids you. Fear Allah , for Allah is stern in inflicting punishment. ”[59:7-10] Zaraib Taxes, apart from zakat and sadqat, which the Islamic state is constraint to rely on the rich to meet the emergencies are called Zaraib.
Such emergencies include war, drought, carrying out of urgent public welfare works and alleviation of unemployment. Discussing the question of assisting the destitute, Imam Ibn-e-Hazm writes: “If the bait-ul-mal funds, and revenues of faie fall short of meeting the economic needs of the suppliants the Caliph can impose additional taxes on the rich. If they resist, the Caliph can use force to make them pay. ” Kra-al-ard State lands leased out on fixed rent are called ‘Annual Rent’ kra-al-ard/lagan.
No ushr or kharaj is levied on these lands. Lands which after war are denoted to a trust for the Muslims or ownerless tracts managed by Bait-ul-maal are called ‘Ard al-Mamlukata’ or Ard al-Hauza Ashur Import duty was collected only once a year from merchants who brought trade goods into the territory of the Islamic state. This custom or import duty is called Ashur. This duty was imposed fot the first tiome in the regime of Caliph Umer (R. A). Muslim traders who carried goods for sale to Rome or Iran paid custom on each consignment.
As a reciprocal measure the Islamic govt also imposed a duty on incoming goods, but the duty was exacted only once a yr. Muslim, Dhimmi, or Non-Muslims, no one was exempt from this duty. However each of them had to pay different rates of Ashur. Muslims being 2. 5%, Dhimmis 5% and Non-Arabs 10%. The minimum value of merchandise on which the duty was payable was 200 dirhams. Muslims who paid Zakat were exempted if they showed an affidavit. Waqf To transfer one’s property to the ownership of Allah, that is, to dedicate it to the cause of Allah is called Waqf(trust).
The income from this property is deposited in the Bait-ul-maal. Amwal-i-fazla Other source of revenue includes: * The property of a deceased Muslim or Dhimmi with no heir becomes the the property of Bait-ul-maal * Secondly the property of an apostate is confiscated by the state and passed on to the ownership of Bait-ul-maal Baitul Maal program is designed to strengthen human resources, information technology, mentoring and facilitation of financing, and system management software technology-based and community empowerment in the areas of sustainable economic development.
The master of the institution of bait-ul-maal is ALLAH and it is made to serve people and to maintain equality and brotherhood in the society. Tax system was designed in such a way that citizens did not consider it as burden and fail to fulfill it. Taxes which were imposed and collected were just for the prosperity of state and its citizens and to make the Islamic state a welfare state.
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