What is the ruling on the taxes imposed by the State? After a brief overview of the conditions of Muslims in Dagestan, Imam Abu al-Hasan al-Ashʿari University inquires about the ruling regarding the taxes imposed by the government on the people’s trade and industries. It also asks about taxes on the people’s land and houses in which they live and which they built with their own hands and at their own expense. The government did not contribute in any way to their construction.

It is established in Islamic jurisprudence that a tax is a mandatory payment levied by the State on the property of citizens without a corresponding specific consideration. Taxes are levied on personal assets and income in consideration of the services and responsibilities carried out by the State for the public interest; they vary according to the laws in force and prevailing circumstances.

In its capacity to act in the public’s best interests, the State has the authority to impose taxes based on proper assessment and fair tax collection to fund its public expenditures and essential needs. These require expenditures that are dependent on a stable source of revenue, especially in the modern era marked by the expansion of State functions and public services.

The State’s general budget consists of general revenues and general expenditures. If the State’s general expenditures exceed its general revenues, this indicates a budget deficit which it must address through various means, including the imposition of taxes.

Based on the above, the basic principle is that taxes are a right owed to the State. The payment of taxes is one of the obligations arising from the contract of citizenship between the citizen and the State. It is therefore impermissible to evade paying them or to offer bribes in order to reduce them.

And Allah Almighty knows best.