dostribution of wealth

8/12/2019 Dostribution of Wealth

1/4

Continue

The objective of Islamic firm is not to earn profit but to seek Allahspleasure . Not to use unlawful means of earning wealth

Just prices come natural to Islamic economic system. The more theIslamic system is dominated by Islamic values the more will it enforce

just prices.

System of zakat, waqf, inheritance, maintains the purchasing powerof people

price control/ taseer

Measures taken by the government to overcome inflation is calledtaseer.

In Islamic economy both the consumer and producer should havehigh moral qualities and avoid creating unjust prices.

Inflation is created due to natural calamities, crisis in internationalmarket, or through hoarding.

Methods for price control

If prices rise due to natural causes, the government must not imposeprice control.

If traders and producers are responsible for the price hike, thengovernment should play its due role in bringing prices down


2/4

Distribution of wealth in Islam

Wealth is created by factors of production. Every factor gets theirdue share.

The prosperity of society depends on how wealth circulates in thesociety. Wealth must not condense in few hands. In most case there

is disequilibrium in the society.

In Islamic economy every possible measure is taken for the justdistribution of resources.

Quran and circulation of wealth

Normally the capitalist spend capital and accrue high profit contraryto salaried class, and daily wage earners, ultimately resulting into the

accumulation of wealth in few hands.

According to Quranic injunctionsWealth should circulate continuously in the society

Wealth should circulate in every class of the society

Circulation of wealth should be regulated by moral principles of

Islam.

Quranic verses

Doomed is every such person who slanders others (in their face) andbackbites them habitually, who thinks that his wealth will remain

with them forever. Nay never , He shall be hurled into the crushing

place

(this is ordained) so that it (wealth) doesntremain circulatingamong your rich people only


3/4

Rent of land

Private ownership of land is recognized by Islam subject to certainconditions

Right to use and consumer goods Right to invest wealth in business in order to earn more profit Right to transfer ownership Right to protection Right to accumulate wealth Islam allows renting out of durable goods not perishable goods. The renting of agricultural land is LAGAN. Only productive land can

be rented out not the barren or saltic. If agricultural land becomes

non productive due to factors beyond the power of tenant, the

tenant shall not be liable to pay its lagan.

Rent/ lagan

Is the amount of compensation which a cultivator pays in lieu of theuse of land to its owner after a fixed period?

ISLAMIC DOCTRINE OF LAGAN

Is based on three principle Justice, benevolence, no injustice (o Muslims) Allah commands you to do injustice and benevolence To levy lagan on cultivator according to their ability. Benevolence

requires the lagan should be collected only when the produce of land

is in excess of their needs. If produce falls short, lagan should be

remit.

Benevolence is the very core of Islamic economics system therefore try to excel one another in good deeds One should keep in mind the principle of justice while fixing the lagan do no wrong and no wrong will be done to you


4/4

Fixing the rate of lagan

The Islamic state while fixing the rate of lagan should safeguard theinterest of cultivator and owner shall keep in view three points

Productivity land Welfare of cultivator (capacity to pay) Cost of cultivation Difference of land, difference of crops, difference in irrigation. Hazrat umar had specially directed to the governors of subdued

provinces to pay special heed to fixing of lagan.

At eve of victory of Khyber, Prophet (pbuh)sent Abdullah bin rawah(R.A) to share equally the crop between Jews and Muslims

dostribution of wealth

Documents