Shaykh Hamza Yusuf on Taxes, Zakat & Riba Fiat Currencies.

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• There is no income tax in Sharia / Islamic sacred law. Income tax is an original communist idea.

• However, if you are going to be incarcerated by the state due to not paying income tax, then you should pay it because your freedom is more important.

• If agricultural charity (zakat al-ushr) were implemented, it could alleviate poverty to a massive extent. The zakat amount due is between 5% to 10%.

• Zakat al-Rikaz refers to charity given on buried treasure or resources found underground and having no apparent owner. These resources could include valuable metals, minerals, or precious stones that have been hidden or left untouched for a long time. The zakat amount due on this is 20%.

• Historically, very few instances existed where Muslims lived without taxes. The Murabitun period was one of them. The Murabitun, also known as the Almoravids, were a Berber Muslim dynasty that emerged in the 11th century in North Africa.

• Fiat currencies (paper money), also known as national currencies (e.g. dollars, pounds, rupees, yen, euros, lira, etc.), come into existence through debt / riba.

• Muhammad ‘Abdu’s modernist view considered certain types of riba as permissible. Some of the modern ridiculous fatwas are built upon his understanding. Muhammad ‘Abdu was an influential Islamic scholar and reformer in the late 19th and early 20th centuries. He was born in Egypt in 1849 and died in 1905. ‘Abdu is best known for his efforts to modernize Islamic thought and reconcile traditional Islamic teachings with the challenges of a sick modern world.

• The Sharia, the sacred law of Islam, does not recognize paper money unless backed by gold or silver.

• Muslims using paper money today (none of which is backed by gold or silver) will, insha’Allah, not incur punishment from God because humanity is forced by central banks to use them.

• The only reason scholars of Islam have begrudgingly allowed paper currency is due to ‘Umum Al Balwa (ubiquitousness of an affliction).

• However, Muslims are encouraged to try and find new alternative innovative ways to get around this tribulation of fiat currencies.

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