Tuesday, February 11, 2014

Economic school of Imam Ali (13)

From this instruction, it is clear that Imam Ali (A.S.) wanted that the welfare of taxpayers should be a dominant reason of tax policy.

In several other letters/instructions issued to the governors, this consistency in the approach of Imam Ali (A.S.) is noticed.

The above-mentioned stand of Imam Ali (A.S.) is still more explicit in the following instruction.

He writes:
“More importance should be attached to the fertility of land than to the collection of taxes because actual taxable capacity of people rests upon the fertility of the land. The ruler who does not pay attention to the prosperity of his subjects and fertility of land but concentrates only the collection of revenue, lays waste the land, (he) ruins the state and brings destruction to creatures of God. His rule cannot last for long”.

The above instruction of Imam Ali (A.S.) should be held as the golden maxim of taxation wherein importance is attached to the tax base and its attributes and not to the tax rate and amount of revenue to be collected.

This essentially is the message of modern period fiscal experts. Now, across the world, tax reforms movements on one-hand and tax administrators on the other, have realized that, in the matters of revenue collection, tax base is more important and not the tax rate.

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