This is the property obliged upon Muslims by Allah (swt) which is necessary to meet the needs and interests obliged upon them in the situation where there are no funds in the Bait ul-Mal of the Muslims to spend upon these needs and interests.
In origin, the permanent sources of revenue for the Bait ul-Mal which Allah (swt) ordained as obligatory upon Muslims, from the Fai’, Jizya, Kharaj, Ushr and funds from the income of the public properties that have been protected by the State, should be sufficient to ensure the spending upon what the Bait ul-Mal is obliged to spend on. This applies to whether there are funds in it or not, and relates to taking care of the citizens’ needs and fulfilling their interests, without the State needing to put taxes upon Muslims.
However, the Legislator (Ash-Shari’) has made the spending upon these needs and interests which the Bait ul-Mal is obliged to meet whether there are funds in it or not, as a duty upon the Muslims in the case where there are no funds in the Bait ul-Mal to spend on these needs.
However, the great burdens placed upon the Khilafah State today may make the permanent sources of revenue for the Bait ul-Mal insufficient to cover all the expenditure on the needs and interests obliged on it, whether there are funds in it or not. If these sources of revenue become insufficient, and there are no funds in Bait ul-Mal to spend on these needs and interests which are due on it whether there are funds in it or not, and Muslims are unable to voluntarily contribute enough of their own accord to cover expenditure on these needs and interests, then the obligation to spend on these needs and interests is transferred from the Bait ul-Mal to the Muslims. This is because Allah (swt) has obliged them to spend on these needs and interests, and their failure to spend on these needs and areas will lead to harming Muslims, whereas Allah (swt) the Glorified obliged the State and the Ummah to remove any harm from Muslims. The Prophet (saw) said: “It is not allowed to do harm nor to allow being harmed.” So Allah (swt) has obliged the State to collect money from Muslims to cover expenditure on these needs and interests.
If this situation arises, then the State must impose taxes upon Muslims such that obligatory expenditure on these needs and interests is met without being exceeded. The State should collect them from what is surplus to the people’s basic needs and luxuries according to the normal standards of living. The following are the interests which are funded by the Bait ul-Mal, or by taxing the Muslims where there are no longer any funds in the Bait ul-Mal.
1. The expenditure upon Jihad and what is necessary for it. This includes building a strong army and giving it a high standard of training, preparing it with developed weapons such that their quantity and quality deter, subdue and frighten the enemy, liberate our lands and terminate the influence of Kuffar in the Muslim’s lands and enable it also to convey Islam to the world. The right of expenditure on Jihad and what is necessary for it is of the rights due upon the Bait ul-Mal whether there are funds in the Bait ul-Mal or not. If there are funds in it, then they are spent on Jihad and its requirements. If there are no funds, then the duty of spending on it, as long as Jihad is obligatory and designated, transfers from the Bait ul-Mal to the Muslims, for Jihad is obligatory upon them by wealth and person. Allah (swt) Ta’ala said:
“Go forth light or heavy and fight with your wealth and persons in the way of Allah (swt). That is better for you if you but know!” [At-Tauba: 41] Anas narrated he said that the Messenger of Allah (saw) said: “Fight the polytheists with your wealth, your hands and your tongues.” In addition, there are tens of Ayat and Ahadith that oblige Jihad by wealth and person upon Muslims. In the situation where there are no funds in the Bait ul-Mal to spend on Jihad and its requirements, the State must hurry to encourage Muslims to voluntarily contribute to Jihad as the Messenger of Allah (saw) used to do. Ahmad extracted from Abdur Rahman bin Khabbab as-Salmi, he said: “The Prophet (saw) gave a Khutbah (speech) and exhorted regarding the army of difficulty, so Uthman bin Affan said: ‘Upon me are 100 camels with their saddle-blankets and saddle bags.’ He said: ‘Then he descended the steps of the pulpit (Mimbar) and exhorted again, so Uthman said: ‘Upon me are another 100 with their saddle-blankets and saddle bags.’” Hudhayfa bin al-Yaman said: “The Prophet (saw) sent to Uthman seeking assistance from him for the army of difficulty, so Uthman sent to him 10,000 Dinars which were poured before him. The Prophet (saw) began turning them before him while praying for him and he said: ‘May Allah (swt) forgive you, O Uthman, for what you have made secret, what you have revealed, what you have hidden, and all that will be until the Hour comes. Uthman should not mind of any action he does after this.’”
If the contributions of the Muslims are insufficient to spend on the designated Jihad, then the State will impose taxes upon Muslims up to the amount necessary and no more, to spend on Jihad and its requirements. It is not allowed for her to obtain more than the required amount for this.
2. Expenditure on military industries together with what they require of other industries and factories to enable the manufacturing of required weapons. This is because Jihad requires an army, and the army inevitably requires weapons so that it can fight. Weapons, in order to be sufficient and of the highest standard, require manufacturing. The military weapons industry therefore, has an intimate relationship and tight link with Jihad. For the State to be in full control of her affairs and free from the influence and control of others over her, she must undertake the production and development of her weapons particularly the vital weapons. This is in order that she has the most modern and best weapons, irrespective of how much weapons develop and advance, and also to have under her control all of that she needs of weapons to scare every enemy whether open or hidden, according to the international position she is in.
The absence of these factories for the Ummah makes Muslims dependent upon Kafir states for armament, a matter which might make the Muslims’ will and decisions subject to the will and decisions of Kafir states. These states would not sell weapons except with conditions that fulfil their interests, and this would inflict the most terrible harm upon the Ummah.
Establishing of these factories is thus obligatory upon Muslims from the texts of the Ayat and Ahadith that oblige Jihad upon Muslims by wealth and person through the indispensable indication (Dalalat al-Iltizam). This is because Jihad depends upon weapons and weapons require industry. This is also indicated by the saying of the Allah (swt) Ta’ala:
“Prepare for them as much as you can of power and tethered horses so as to frighten the enemy of Allah (swt) and your enemy, and others besides them whom you do not know but Allah (swt) knows.” [Al-Anfal: 60]
The preparation commanded by Allah (swt) is the preparation which achieves the terrorising of the enemies, whether they are open, hidden or potential. This terror depends upon acquiring vital and developed weapons of the highest level, and acquiring these weapons depends upon establishing factories. Therefore, this Ayah indicates the obligation upon the Ummah of establishing factories by the indispensable indication. Moreover, the absence of these factories inflicts a terrible harm upon the Ummah, and removing harm from the Ummah is obligatory. The removal of this harm will not be achieved except by establishing military manufacturing and other associated industries.
It is permissible for individuals from within the Ummah to establish all or some of these industries to manufacture the necessary weapons. If they do not establish them, or they establish only some of them, then it is obligatory upon the State to build factories necessary to produce all the obligatory weapons and equipment. Building these factories is of the obligatory rights, whether there are funds in the Bait ul-Mal or not. If funds are present, then they are spent to build these factories. If there are no funds in the Bait ul-Mal to spend on these factories, then the financial obligation transfers to the Ummah. In this case the state introduces a tax in order to raise the necessary funds, irrespective of the amount.
3. Spending on the poor, needy and wayfarers. This is an obligation whether there are funds in the Bait ul-Mal or not. The expenditure is from the Bait ul-Mal, in the case where there is sufficient funding present. If there are no funds in the Bait ul-Mal then the obligation transfers to the Muslims. This is because spending upon the poor, needy and wayfarers has been obliged by Allah (swt) upon Muslims in the form of Zakat and Sadaqah. The Prophet of Allah (saw) has narrated from his Lord: “The one who goes to sleep satisfied while he knows that his neighbour next to him is hungry does not believe in me.” Therefore, if there are funds in the Bait ul-Mal to spend on the poor, needy and wayfarers then they are spent on them. If not, the obligation is transferred to Muslims and the State raises taxes for this purpose such that the required amount of funding is raised.
4. Expenses such as the salaries of soldiers, civil servants, judges, teachers and the like who provide services for the benefit of the Ummah. They deserve, in return for providing these services, wages from the Bait ul-Mal, and the right to spend upon them is an obligation whether or not there are funds in the Bait ul-Mal. If there are funds sufficient in the Bait ul- Mal, then they are spent upon them. If not, then the obligation is transferred to the Muslims. This is because Allah (swt) has ordained the authority (Sultan) for the Ummah and He (swt) obliged her to appoint a Khalifah to whom she pledges allegiance (Bay’ah) to hear and obey according to the Book of Allah (swt) and the Sunnah of His Messenger (saw) . The Khalifah undertakes this authority on her behalf and takes care of her affairs in accordance with the Book and Sunnah. Taking care of her affairs can only be accomplished by establishing the institutions of the State, including government institutions such as, judges, soldiers, teachers and civil servants. Appointing such people in the State requires the payment of compensation and wages. Since Allah (swt) has obliged the Muslims to appoint such people, then He (swt) has also obliged them to pay their compensation and wages by indispensable indication. The Prophet of Allah (saw) appointed governors, employees, secretaries and assigned awards (‘Atiyyat) for them. Similarly the Khulafa’a after him appointed governors, officials, judges, secretaries and soldiers, and they assigned awards for them from the Bait ul-Mal.
Funding for these people is thus taken either from the Bait ul-Mal or by imposing the required taxes on the Muslims where the Bait ul-Mal has insufficient funds for this purpose.
5. Expenses due in the form of service and caring of the Ummah.
These are spent on the utilities whose existence is considered necessary (Dharura) such that their absence results in harm to the Ummah. These could include public roads, schools, universities, hospitals, mosques, water supplies and similar services. The right of spending upon these matters is considered obligatory whether or not there are funds in the Bait ul-Mal. If there are funds in the Bait ul-Mal then they are used to establish these utilities. If not, then the obligation to spend upon them is transferred to the Muslims. This is because spending upon them is obligatory upon Muslims. Any failure to establish them will result in harm to the Ummah. Harm must be removed both by the State and the Ummah due to the saying of the Prophet (saw) : “It is not allowed to do harm nor to allow being harmed” and his saying: “Whoever harms (others) then Allah (swt) will harm him, and whoever overburdens them Allah (swt) will overburden him.”
It is forbidden to impose taxes upon the Ummah to raise funds for expenditure which is obligatory when there are funds in the Bait ul-Mal, but not forbidden when there are no funds. This could be expenditure on services offered by the State and supplied to people in the form of caring utilities where no harm afflicts Muslims if they are not provided. An example is the opening of a second road or refurbishing it when there is another suitable road that can meet the need. Or like building a school, university or hospital where there are other suitable ones that can meet the need, or widening streets that need not necessarily be widened. Another example is the establishment of projects where failure to do so does not result in harm to the Ummah, like mining nickel, antimony or building a shipyard to build commercial ships. The State undertakes all these matters when there are surplus funds in the Bait ul-Mal in contrast to the expenditure on the interests where the failure to spend on them results in harm to the Ummah. If there are no funds in the Bait ul-Mal, then the State does not undertake them nor is it permitted to impose taxes for their sake. This is because Muslims are not harmed by failure to establish them, and thus establishing them is not obligatory.
If there are funds in the Bait ul-Mal, they are spent upon establishing and providing the necessary utilities, if not, the State imposes taxes to raise the necessary amount to establish or provide these utilities.
6. Expenditure upon emergencies like famines, earthquakes, floods and enemy attacks. The right of spending on these matters is not linked to the presence of funds in the Bait ul-Mal. Such spending is obligatory irrespective of whether there are funds in the Bait ul-Mal or not. If there are funds in the Bait ul-Mal, then they must be spent immediately whenever these emergencies occur. If there are no funds, then it becomes obligatory upon the Muslims, and the funds have to be collected from them immediately and without delay. If harm is feared due to any delay, then the State borrows the amount necessary to spend upon these emergencies and then pay back what it borrowed from what it is collected from Muslims. The evidence for obliging this upon Muslims is the Hadith: “The one who goes to sleep while knowing that his neighbour next to him is hungry does not believe in me”: and the Hadith: “The covenant of Allah (swt) is removed from the people of any locality in which there are people hungry.” This is in relation to famine. As for earthquakes and floods, the evidences for the obligation of saving the unfortunate and removing harm from Muslims are the evidences for obliging such expenditure upon Muslims.
These are the interests upon which Muslims are obliged to spend when there are no funds in the Bait ul-Mal, and for which the State has to impose taxes upon Muslims in order to spend upon them when the permanent sources of revenues of the Bait ul-Mal and the revenues from the protected public properties (Hima), are insufficient.
Taxes are taken from the wealth of Muslims which is in excess of the basic needs and luxuries according to their standards of normal living. Taxes are collected from the Muslims who have wealth surplus to the satisfaction of their basic needs and luxuries. Nothing is taken from those who have no surplus wealth. This is due to the saying of the Prophet (saw) : “The best Sadaqah is that given out of richness.” The richness here means that which the person can afford after satisfying his needs. It was narrated from Jabir that the Messenger of Allah (saw) said: “Start with yourself when giving Sadaqah. If there remains any excess, then to your family. If there remains any excess, then to your relatives. If there remains any excess, then do like this, give those in front of you and those to your right and those to your left.” He (swt) deferred the obligation to spend upon anyone else till after spending upon oneself. Similar to this are taxes as they are like financial maintenance and like Sadaqah. Allah (swt) says:
“They ask you of what they should spend. Say: The excess (al-’afu)” [Al-Baqarah: 219]
In other words, that which causes no hardship in spending and which is extra to one’s need. Taxes are taken from all wealth in excess of need, not from the income.
Taxes are collected to raise the amount required and necessary to cover the deficit in the obligatory expenditure in the previously mentioned interests. No consideration is given, while raising taxes, to the notion of preventing increase of wealth, or preventing richness or increasing the revenues of the Bait ul-Mal. Consideration is only given for their sufficiency to fulfil the required expenditure on these interests. Nothing extra should be taken as this is injustice, for it is not obligatory upon Muslims to pay more than this, and injustice is darkness on the Day of Judgement.
The State is not allowed to impose indirect taxes, nor to do so in the form of court fees, fees on petitions forwarded to the State, sale or registration of land, buildings or measurements or other types of taxes other than those already mentioned. This is because raising taxes is of the prohibited injustices and of the tax about which the Prophet (saw) said: “The tax-collector will not enter Paradise.”