Article 15 is on The Economic Order and the Rights Evolving Therefrom
Use of natural resources in the state and private level is generally permitted in Islam because Quran mentions that Allah has created all that is on earth for mankind in 2:29. The Islamic jurists have extracted a legal maxim from this verse which states all things are in general permissible1. Exceptions are those which have been found in the law and jurisprudence.
Payment to work is essential and all labors should be swiftly paid for their work as stated in Tirmizhi “Give the worker his wages before his sweat dries.”
Islam believes in ownership of property unlike communism and also unlike capitalism where property is hoarded. Hoarding is prohibited in Islam. Whatever Islamic tax is given on property relieves itself from being a hoarded property. As to expropriation it is also generally prohibited in Islam as some legal principles show such as "No person may deal with the property of another without such person's permission." and "Any order given for dealing with the property of others is void." The only exception is to be considered through the law as the maxim also points out "No person may take another person's property without legal cause."2
The amount of Islamic tax as fixed in Hanafi legal school is 2.5 percent of the wealth over which one year has passed since ownership minus the wealth needed for basic needs3.
The cycle4 of wealth which also includes production and distribution must not be fixed with in the rich class but policies should be taken so that the wealth passes to the poor also whether through zakat or charity or any other policy based decision with the condition that government does not intrude in people's private wealth.
Point f is not a singular issue but it is the whole encyclopedia of Islamic law of transaction which is beyond the scope of this paper. But one thing is noteworthy to be mentioned and that is monopoly in Islam. The jurists of all schools agreed that monopoly which harms people and their needs is forbidden and on the Imam of the state to see to that such monopolists are dealt with and what he monopolizes on are freed to the market. They disagreed however if there is no harm on the mass. The Malikis, Shafis and Hanbalis stated that even in this condition the monopolist will be forced to free to the market, and the Hanafis saw that the Imam should only warn and reprimand such monopolist5. Some scholars like Imam Ghazzali and others stated that to prevent monopoly it is Fard Kifayah that goods of same kind are produced in the market and is not dependent on a selected few. The jurists also discussed the issue of fixing prices to stop monopoly. All four Islamic legal schools agreed that fixing price is prohibited in general sense due to the fact that trade and business transactions are to be taken place through mutual consent as mentioned in some verses and Hadiths6. However in exceptional economic circumstances fixing price is allowed from the Imam and this is the view of Hanafis and Malikis . As to Shafis and Hanbalis It is impermissible. The first view is more flexible and closer to the benefits of Allah's creatures.
1In AlAshbah wa An-Nazaeer by Imam Ibn Nujaim Al-Hanafi
2ibid For these maxims
3Please refer to Fiqh books for detailed discussion on Zakatable items
4Concerning the wealth from the spoils of the towns which was exclusively for Prophet pbuh and some other categories Allah says “that it may not circulate only among those of you who are rich.” (59:8)
5Mausuwat Fiqhiyya 2/95
6AlBadaee wa Al-Sanaee and Kafi Fi Fiqh Ahl Almadina, AlHawi and Sharh Muntaha AlIradat
Use of natural resources in the state and private level is generally permitted in Islam because Quran mentions that Allah has created all that is on earth for mankind in 2:29. The Islamic jurists have extracted a legal maxim from this verse which states all things are in general permissible1. Exceptions are those which have been found in the law and jurisprudence.
Payment to work is essential and all labors should be swiftly paid for their work as stated in Tirmizhi “Give the worker his wages before his sweat dries.”
Islam believes in ownership of property unlike communism and also unlike capitalism where property is hoarded. Hoarding is prohibited in Islam. Whatever Islamic tax is given on property relieves itself from being a hoarded property. As to expropriation it is also generally prohibited in Islam as some legal principles show such as "No person may deal with the property of another without such person's permission." and "Any order given for dealing with the property of others is void." The only exception is to be considered through the law as the maxim also points out "No person may take another person's property without legal cause."2
The amount of Islamic tax as fixed in Hanafi legal school is 2.5 percent of the wealth over which one year has passed since ownership minus the wealth needed for basic needs3.
The cycle4 of wealth which also includes production and distribution must not be fixed with in the rich class but policies should be taken so that the wealth passes to the poor also whether through zakat or charity or any other policy based decision with the condition that government does not intrude in people's private wealth.
Point f is not a singular issue but it is the whole encyclopedia of Islamic law of transaction which is beyond the scope of this paper. But one thing is noteworthy to be mentioned and that is monopoly in Islam. The jurists of all schools agreed that monopoly which harms people and their needs is forbidden and on the Imam of the state to see to that such monopolists are dealt with and what he monopolizes on are freed to the market. They disagreed however if there is no harm on the mass. The Malikis, Shafis and Hanbalis stated that even in this condition the monopolist will be forced to free to the market, and the Hanafis saw that the Imam should only warn and reprimand such monopolist5. Some scholars like Imam Ghazzali and others stated that to prevent monopoly it is Fard Kifayah that goods of same kind are produced in the market and is not dependent on a selected few. The jurists also discussed the issue of fixing prices to stop monopoly. All four Islamic legal schools agreed that fixing price is prohibited in general sense due to the fact that trade and business transactions are to be taken place through mutual consent as mentioned in some verses and Hadiths6. However in exceptional economic circumstances fixing price is allowed from the Imam and this is the view of Hanafis and Malikis . As to Shafis and Hanbalis It is impermissible. The first view is more flexible and closer to the benefits of Allah's creatures.
1In AlAshbah wa An-Nazaeer by Imam Ibn Nujaim Al-Hanafi
2ibid For these maxims
3Please refer to Fiqh books for detailed discussion on Zakatable items
4Concerning the wealth from the spoils of the towns which was exclusively for Prophet pbuh and some other categories Allah says “that it may not circulate only among those of you who are rich.” (59:8)
5Mausuwat Fiqhiyya 2/95
6AlBadaee wa Al-Sanaee and Kafi Fi Fiqh Ahl Almadina, AlHawi and Sharh Muntaha AlIradat
