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Taxation policy is an important source of revenue for government in the conventional and Islamic economy now a days. But the question arises that taxation policy is according to Islamic shariah or not. This paper discussed imposition of taxes according to scholars Imam Malik, Ibn Hazm , Al-Ghazali and Ibn Khaldun. Also examines types and principals of taxation in Muslim states. By defining the determination of the taxpayers and the tax procedures it is concluded that taxation policy beyond zakah is un-Islamic. This paper discussed Al-Ghazali’s five necessary Shariah-mandated foundations of individual and social life: religion, life, family, property, and intellect and his focus on the economic aspects of maslaha (social utility), distinguishing between necessities, comforts and luxuries. Scholars argue that to obtain higher tax revenue, it is necessary to lower the tax rate.The Islamic state must have to follow the rules set by Prophet Muhammad (peace be .upon him) for its economic, political and social relations among people on the basis of: “What is lawful is clear and what is prohibited is clear.” Therefore, the Islamic state cannot impose economic and political priorities; it must follow the guidelines provided by Shari’ah.1 Many opinions and ideas are presented in the modern Islamic literature in attempts to define the role of the Islamic state, in general, and its economic function in particular. The following three are the most important: The bases of the Islamic state are welfare. The prosperity of the lower socioeconomic strata is its priority. As the Islamic state is a development state, economic growth plays a predominant role in shaping the state's policy. The Islamic state is responsible for social and economic justice. Economic policy is developed with economic balance and equilibrium in mind.2

Bibi Fozia , Noor P. Khan. (2018) ISSUES OF TAXATION IN AN ISLAMIC ECONOMY, Al-Azhāar, Volume 4, Issue 2.
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