Islamic economic system: from principles to microeconomics and macroeconomics fields (61)

Continuation

Abu Bakr al-Tartusi (450 years) provided the concept of the ability to pay in the principle of taxation.

That principle says that tax should be imposed only on the surplus income after meeting all the basic needs.

Who do not have surplus are not able to pay taxes.

This is the idea of minimum taxable income.

Here any income below this is exempted from tax.

Abu Bakr al-Tartusi also emphasised the need for:

ü justice;

ü and benevolence

in the collection of taxes, without:

ü oppression;

ü injustice;

ü and injury

to the taxpayers.

Used from paper of Abdul Ghafar Ismail and  Noraziah Che Arshad