Press Release
The Khilafah will Ensure Sizeable Revenues for the State, without Burdening the Poor through Cruel Regressive Taxation

In accordance with the agreement with the IMF, on 26 May 2019 the regime’s economic team firmed up budget proposals for taxation measures, for 2019-20. On 25 May 2019, the regime announced it would increase next tax collection target to Rs5.550 trillion, almost 35.4 percent more than the current year’s revised estimate. The 35% increase will only worsen the situation, when the current levels of taxation have already broken the backs of the people, increasing costs of production and crippling the ability of the people to buy food, clothing and medicine.

O Muslims of Pakistan!

Clearly, it is time to look outside of IMF prescriptions for solutions to our worsening economy. The Ummah of RasulAllah (saaw) needs to look no further than our great Deen, as implemented by the Khilafah (Caliphate) on the Method of Prophethood. Allah (swt) said,

[كَيْ لاَ يَكُونَ دُولَةً بَيْنَ الأَغْنِيَاءِ مِنْكُمْ]

“It is so that wealth does not circulate solely among the wealthy from amongst you.” [Surah Al-Hashr 59: 7]. Islam’s systems of revenues uniquely prevents the concentration of wealth in the hands of the few and ensures the circulation of wealth without burdening the poor and needy. Instead of burdening the poor and needy with cruel regressive taxation such as GST and income tax, the Khilafah will take revenues from the financially capable, with sufficient capital for owning land or trading merchandise, through Kharaaj on agricultural land and Zakah on trading merchandise.  Instead of extracting hundreds of billions of rupees per year from consumers to secure profits for private owners of power plants, the Khilafah will ensure public ownership of energy and minerals, making large revenues available for public expenditure. Instead of making 1.5 trillion rupees in interest payments, the Khilafah will remove this excessive bleeding from the state treasury by rejecting the interest based debt financing model. The Khilafah will implement the Islamic rulings on company structures, which restrict the scale of private ownership of heavy industry that is capital intensive, such as large scale manufacturing, construction and transport, allowing the state Allowing the state to raise the financial level of the poor from state revenue. The Khilafah will directly seize the billions of dollars of misappropriated wealth from the corrupt within the political and military leadership, such as Musharraf, Kayani, Nawaz and Zardari, ending the lengthy drama of court trials. If there are still insufficient funds in the Bait ul Maal to fulfill the obligations, then and only then will the Khilafah impose emergency taxation upon the wealth of Muslims that is in excess of their basic needs and luxuries, according to their standards of normal living. Nothing whatsoever is taken from those who have no surplus wealth, rather they are deserving of receiving funds. So, is it not time for real change, through the re-establishment of the Khilafah (Caliphate) on the Method of Prophethood? Is it not time for the Muslims to strive for the ruling by all that Allah (swt) has revealed, for success in the Dunya and Aakhira?

Media Office of Hizb ut Tahrir
in Wilayah Pakistan