Khums (The Islamic Tax)

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Publisher: www.alhassanain.org/english
Category: Jurisprudence Science
ISBN: 0-920675-11-5

Khums (The Islamic Tax)

This book is corrected and edited by Al-Hassanain (p) Institue for Islamic Heritage and Thought

Author: Sayyid Muhammad Rizivi
Publisher: www.alhassanain.org/english
Category: ISBN: 0-920675-11-5
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Khums (The Islamic Tax)

Khums (The Islamic Tax)

Author:
Publisher: www.alhassanain.org/english
ISBN: 0-920675-11-5
English

This book is corrected and edited by Al-Hassanain (p) Institue for Islamic Heritage and Thought

Khums ,An Islamic Tax

Author(s):Sayyid MuhammadRizvi

www.alhassanain.org/english

Miscellaneous information:

First edition -- March 1984 / 1404 Second (revised) edition -- October 1984 / 1404 Third (revised) edition -- 1992 / 1412All rights reserved. This publicationmay not be printed without the permission of the writer. ISBN 0-920675-11-5 Published bySayyid MuhammadRizvi 7 El Dorado Street Richmond Hill, Ontario Canada L4C 0G9

Notice:

Thiswork is published on behalf of www.alhassanain.org/english

The typing errors aren’t corrected.

Table of Contents

Preface 6

An Introduction To The Islamic Economic System 7

A. The Middle Path 7

B. The Economic Equality 8

On Individual Level 9

First level of charity: 9

Second level of charity: 9

Third level of charity: 9

On Collective Level 9

Notes 10

Khums In The Qur'an & History 11

The History of Khums 11

The Islamic Laws 12

The Interpretation of the Qur'an 12

Notes 13

Khums On The Surplus Or Profit Of The Income 14

A. When To Pay Khums 14

Beginning 14

Year 14

Hijrah or Christian Calendar 14

B. Definitions of Income, Profit & Surplus 14

Income 14

Is khums also wajib on gift, prize, legacy, charity, zakat and khums? 14

Surplus or Profit 14

C. The Deductible Expenses 15

1. The Household Expenses 15

(a) The Eligible Deductions 15

i. The items: 15

ii. Is there a limit in household expenses? 15

iii. Can I deduct for the loss in household items? 16

(b) Rules On Household Expenses: 16

i. Two sources of income 16

ii. New unused household items 16

iii. An earning woman 16

iv. Income of a dependent 16

v. Two income family 17

vi. A minor's income 17

vii. Family allowance 17

viii. Khums in a person's estate 17

2. The Commercial Expenses 17

(a) The Deductible Expenses: 17

(b) Rules On Commercial Expenditure: 17

i. Investment capital: 18

ii. Increase in by-product of a khums-free commodity: 18

iii. Increase in market value of a khums-free commodity: 18

iv. Depreciation in or loss of a commodity: 18

v. Compensation for the loss: 18

vi. Selling an item on which khums is wajib: 19

vii. Partnership with one who does not pay khums: 19

D. I Never Paid Khums Before 19

The Legitimate Wealth Mixed With Illegitimate Wealth 21

A. Definitions 21

B. Possibilities 21

The Distribution of Khums 22

A. The Two Shares Of Khums 22

B. The Sihmu 'L-Imam 23

1. Where Should The Sihmu 'l-Imam Go? 23

(a) During the Presence of the Imam: 23

(b) During the Ghaybat of the Imam: 23

2. How Is The Sihmu 'l-Imam Used? 24

3. Sihmu 'l-Imam's Role in The Financial Independence of The Mujtahids 25

C. The Sihmu 's-Sadat 25

1. During The Prophet's Time 25

2. After The Prophet's Death 25

3. How Is Sihmu 'S-Sadat Distributed? 26

Notes 26

Some Thoughts On Khums 27

A. Khums: a Charity or a Duty? 27

B. Do Others Also Give Khums? 27

C. Khums Dependency Syndrome 28

D. Those Who do not Pay Their Dues as Seen By Imam `Ali (A.S.) 28

Notes 29

Preface

Sincekhums is an issue with which aShi`ah Muslim is faced at least once in a year, the need for a simple and, at the same time, comprehensive book on this subject has been felt in our community since a long time.And therefore , when this booklet was published in 1984 in Vancouver, it was, al-hamdu lil-lah , very well received.

In 1990,I revised and expanded the previous editions. A few pages were added dealing with the verse ofkhums (in ChapterOne ), and also the usage ofkhums during the days of the Prophet and the Imams ofAhlul Bayt (in Chapter Four). These additions will give the reader a brief look into the history ofkhums . Obviously, the size and purpose of the booklet did not allowme to deal with this aspect ofkhums comprehensively. A chapterhas also been added at the end to express my thoughts about some of the moral and“political” sides ofkhums .

Finally, some practical issues related tokhums were also added in ChapterTwo for those who live in the West.

I hope this edition proves more useful to the members of our community.

Wa matawfiqi illa bi 'l-Lah .

S.M.Rizvi

Toronto, Canada

Dhu 'l-Qa`dah 1412

May 1992

An IntroductionTo The Islamic Economic System

A. The Middle Path

Islam is a complete way of life. It is not only concerned with the spiritualupliftment of human beings, it is equally concerned about their material and physical well-being. Islam guides its followers in financial and economic matters, in social and political affairs,and also in moral and personal spheres of human life.

Askhums is an important pillar of the Islamic economic system, it is appropriateto briefly describe the system itself. However, one must always remember that the Islamic economic system is not in itself complete; it is a part of the over-all system of life. Islam is a compact system of life in which all its aspects (religious, ideological, social, political and ethical)are well synchronized . Muslims will succeed only if they put the whole system into work, and not just choose and pick from it according to their likes and dislikes.

Anyhow, for this booklet, the simplest way to describe the Islamic economic system is by highlighting its differences with capitalism and communism.

Capitalism is an economic doctrine based on the idea of private ownership of the means of production and distribution. It is a system in which the capitalistis given a free hand; and government does not regulate anything for the benefit of the workers. For example, there is no minimum or fair wage.

Everythingis left on the principle of supply and demand. The rich get richer and the poor get poorer. Povertyis equated to idleness; personal shortcomings are considered the chief cause of poverty. Hence, in its ideal system, capitalism has no room for compassion and benevolence towards the poor and the needy.1

A similar mentality also existed among some aristocrats of Mecca. The Qur'an says,

“When it is said to them, 'Give charity from what God has given to you,' the unbelievers say to the believers, 'Should we feed the person whom God, if He wished, could feed?'” (36:47)

It was to remedythis situation that some thinkers of the West promoted the ideas of communism. The economic doctrine of communismis based on the idea of centralized public ownership of the means of production and distribution. The communistswent to the other extreme and completely denied the concept of private ownership.

Communism was a reaction to the vices of capitalism; but areaction which tried to completely suppers a concept ingrained in us by nature, that is, private ownership. Naturally, as soon as the masseswere given political freedom, they rebelled against communism. The collapse of this system in Soviet Union and Eastern Europe is a living testimony to this fact.

Although communism has failed, it had quite an impact on the economic policies of many countries. Quite a few Western capitalist countries, to prevent the spread of communism, modified their economic system and created whatis now known as welfare states. A welfare state allows provisions to prevent exploitation of the workers and to provide for the basic needs of each citizen.

Islam is“a straight path;” and naturally, its economic system is based on very balanced standards. Islam, in contrary to communism,recognises the concept of private ownership.But , in contrary to capitalism, Islam has limited the means of acquiring wealth to prevent the excessive accumulation of wealth in a minor quarter of the society.

The Islamic economic systemis based upon the belief that only Allah is the real and actual owner of everything.But God has also implanted the concept of ownership in our nature; and thus, we are allowed to“own” the wealth of this world. The Qur'an says,

“Whatever is in the heavens and the earth belongs to Allah.” (2:284)

Allah is the owner of the whole universe. It is in this capacity that He has allowed us to own the blessings of this world by saying,

“He has created for you whatever that is in the earth. (2:29)

However, Islam also wants to prevent the excessive accumulation of wealth in the hands of a few people so the society may not fall into two classes: one is overstuffing, while the other is starving. The chance of such a situation is very real.

A look at one of the richest nation in the world, the United States of America, and its problem of the poor,hungry and homeless people will bear us out. The Qur'an justifies the concept of tax by saying:

“...so that (the wealth) may not become a monopoly of the rich among you.” (59:7)

In the early period of the Islamic history, such a situation actually occurred. When `Uthman bin `Affan became caliph, he handled the public wealth in such a manner that within a short time, his tribe, theUmayyads , became the richest people in the Muslim empire. Imam `Ali binAbi Talib , in a famous sermon, explains the reasons why he was reluctant to accept the caliphate after `Uthman's murder.

The Imam says,“Had it not been for the pledge of Allah with the learned people that they should not be indifferent to the gluttony of the oppressor and the hunger of the oppressed, I would have cast the rein of caliphate on its shoulders...” 2

Top in the list of priorities of Imam `Ali's caliphate was the re-establishment of social justice in the Muslim community.And it is this same agenda which created strong opposition to `Ali among those who were used to special privileges during the previous caliphate.

Islam does not only teach equality of the Muslims in the eyes of Allah, but it also promotes equality in economic sphere. However,“equality” in Islam does not mean“similarity”. Islam aims to elevate all its followers to the level ofghina -- being free from want. It is thisequality which Islam strives for in its economic system.

B. The Economic Equality

To bring about this equality in the economic condition of the people, Islam has introduced various methods. An important method is the transferring of the excess wealth from the fortunate sector of the society to its less fortunate members. Thisis done on two different levels: on individual level and on collective level.

On Individual Level

The economic equalityis pursued through the moral and ethical teachings of charity. In Arabic, thisis known assadaqah andinfaq . There are many verses in theQur'an which command the Muslims to help others voluntarily. There are more verses dealing with voluntary charity than the obligatory dues.Every one is morally obliged to help others according to his orher own means and resources.

First level of charity:

They ask you (O Muhammad) as to what they should spend (in way of charity). Say,“Whatever can be spared (from your wealth after your own expenses).” (2:219)

Second level of charity:

...The pious (are) those who...spend (in charity) from whateverWe have given to them. (2:3)

Third level of charity:

The pious people (are) those who spend (benevolently) in good and bad days. (3:134)

In all these levels, one must remember to follow the path of moderation: neither keep your hand shackled to your neck (out of greed), nor outspread it completely open -- otherwise you will sit reproached and denuded. (17:29)

Someone asked ImamJa` far as-Sadiq about a group of people who are prosperous while their Muslim brothers are in severe need. Is it right for the rich people to eat and drink satisfactorily while their brothers are hungry,specially during the difficult days?

The Imam said,“Surely a Muslim is brother of a Muslim; he does not oppress his brother, neither abandons him nor deprives him. The Muslims are obliged to work hard for their brother, to relate to him, to help him, and to be charitable towards the needy people. 3

On Collective Level

The economic equalityis guaranteed through the obligatory taxes on the excess wealth of every Muslim. In an ideal Islamic society, the Islamic government is responsible for enforcing the laws of Islamic taxes likekhums ,zakat ,fitrah ,khiraj , etc. For example, while explaining the role of an Imam in his capacity as a leader, Imam Musa al-Kazim says,“Imam is the heir of a person who has no heir, and he is the provider of a person who has no provider. 4

This economic security is tobe extended to all the subjects of an Islamic state, even if they are non-Muslims. Once Imam `Ali passed by an old man who was begging on the side of the road. The Imam asked,“What is this?” The people said,“OAmiru 'l-mu'minin , he is a Christian.” The Imam said,“You have used him until he became old and is unable (to work any longer), and then you have deprived him (of his basic needs)!! Provide for him from the public treasury. 5

In short, Islam aims at eliminating the“need” (hajat ), and elevating the needy people to the level of being“free from want” (ghani ).

* * *

In this booklet, we talk about just one aspect of the Islamic economic system known askhums .Khums is one of the obligatory taxes imposed by Islam upon its followers. The reason why we are discussingkhums and notzakat , isbecause the latter rarely applies to theShi`ah Muslims in Europe and North America.6 Whereaskhums applies to most Muslims.

Notes

1. A prominent example in our time of sucha thinking was the U. S. President Ronald Reagan. Patti Davis, Reagan's daughter, blamed her father's policies for fostering homelessness in the United States; she ridiculed her father's anecdotes about “welfare cheats” and his view that people are “homeless by choice.” See Globe & Mail, September 21, 1990.

2.Nahju 'l-Balaghah , sermon No. 3.

3.Hasan b.Hasan al-Hurr al-`Amili ,Wasa'ilu 'sh-Shi`ah , vol. 11 (Beirut: DarIhya'i 't -Turathi 'l-`Arabi , 1391 AH) p. 597.

4. Muhammad b.Ya` qub al-Kulayni , al-Usulu 'l-Kafi , vol. 1 (Tehran:Daru 'l-Kutubi 'l-Islamiyya , 1388 AH) p. 542.

5. Al-`Amili ,Wasa'il , vol. 11, p. 49.

6.Zakat , according toShi`ah laws, is obligatory on nine items only: on gold and silver coins; on camels,cows and sheep; on wheat, barley, dates and raisins.

Khums In The Qur'an & History

Khums literally means“one-fifth or 20%”. In Islamic legal terminology, it means“one-fifth of certain items which a person acquires as wealth, and which must be paid as an Islamic tax”. The Qur'an mentions it in the following verse:

Know that whatever of a thing you acquire, a fifth of it is for Allah, for the Messenger, for the near relative, and the orphans, the needy, and the wayfarer...( 8:41)

In this verse, the wordghanimtum has been used which has been translated as“you acquire”. As explained above, it means“certain items which a person acquires as wealth.” What are these certain items? According to theahadith of the Imams ofAhlul Bayt , theitems which are eligible forkhums are seven:

the profit or the surplus of the income.

the legitimate wealth which is mixed with some illegitimate wealth.

mines and minerals.

the precious stones obtained from sea by diving.

treasures .

the land which adhimmi kafir buys from a Muslim.

the spoils of war.

However, there are some people who interpret the wordghanimtum as“whatever of a thing you acquire as spoils of war,” thus confining the obligation ofkhums to the spoils of war only. This interpretation is based on ignorance of the Arabic language, the history ofkhums ,the Islamic laws and of the interpretation of the Qur'an.

To make this pointcrystal clear , I would like to quote the following arguments from my father, `Allamah Sayyid Sa’eed Akhtar Rizvi . In reading the following paragraphs, remember that the wordghanimtum has been derived from al-ghanimah .

The Meaning ofGhanimtum

The famous Arabic dictionary of al-Munjid (by Father LouisMa`luf of Beirut) says, al-ghanim and al-ghanimah means:

(a) What is taken from the fighting enemies byforce.

(b) All earnings generally...Furthermore, the saying al-ghunm bi 'l-ghurm means that the profit stands against expenses, i.e., as the owner is the sole proprietor of the profit and nobody shares it with him, therefore only he bears all the expenses and risk.'1

This implies that in Arabic language al-ghanimah has two meanings: one the spoils of war, and the other 'profit'. The above quoted proverb also proves that 'profit' isnot uncommon meaning.

When a word in the Qur'ancan be interpreted in more than one way, it is incumbent upon the Muslims to seek guidance from the Prophet and theAhlul Bayt . Otherwise, they would be guilty oftafsir bi 'r-ra'iy (interpreting the Qur'an according to one's own personal views); and this is a sin which pushes the sinner intojahannam .

The History ofKhums

Khums is one of thosethings which were introduced by `Abdu 'l-Muttalib , the grandfather of the Prophet, and continued in Islam. Acting upon a command of God given to him in dream, when `Abdu 'l-Muttalib rediscovered the well ofZamzam , he found in it many valuable things which were buried in it in very remote past by theIsmailites when they feared that their enemies would usurp them.

When `Abdu 'l-Muttalib found that buried treasure, he gave away its one-fifth (literally,khums ) in the way of God and kept the remaining four-fifth to himself. Then it became a custom in his family; and after thehijrah of the Prophet, the same systemwas incorporated in Islam.Thus the firstkhums was not given from the 'spoils of war', but from a buried treasure (which is one of the seven items eligible forkhums .)

The Islamic Laws

Not a single sect of Islam confines the meaning ofghanimah to the 'spoils of war'. In addition to the 'spoils ofwar' the following items are subject tokhums :

(a) Minerals: eligible forkhums inShi`ah andHanafi sects.

(b) Buried treasure: eligible forkhums in all Muslim sects (that is,Shi`ah ,Hanafi ,Maliki ,Hanbali andShafi`iy ).

The Interpretation of the Qur'an

As mentioned earlier, the interpretation of the Qur'anmust be based on the teachings of theAhlul Bayt . The wordghanimah in the verse under discussionhas clearly been interpreted as 'al-fa'idatu 'l-muktasabah -- the earned profit' by our Imams.

“To conclude, we can say that the wordghanima was never treated as being confined to the 'spoils of war' by any sect of Islam; and as far as our Imams are concerned, it meant many things besides the spoils of war right from the day of Imam `Ali (peace be upon him), as the authentic traditions show. 2

Whathas been quoted above can also be substantiated from the practice of the Prophet of Islam himself. For example, when the Prophet sent `Amr binHazm to Yemen, he wrote instructions for him in which, among other things, he says,“...to gather thekhums of Allah from the gains [of Yemenis]. 3

And when the tribe ofBani Kilal of Yemen sent itskhums to the Prophet, the latter acknowledges it by saying,“Your messenger has returned and you have paid thekhums of Allah from the gains (al-ghana'im ). 4

It is interesting to note that theBani Kilal obeyed the Prophet's order and sent thekhums of its gains to him while no war had taken place between the Muslims of Yemen and the unbelievers. This is a clear indication thatkhums was not restricted by the Prophet to the spoils of war.

The importance given by the Prophet to the issue ofkhums can also be seen in his advice to the delegation ofBani `Abdu 'l-Qays . It seems thatBani `Abdu 'l-Qays (which was a branch ofRabi`ah ) was not a very strong tribe.Moreover, in order to travel to Medina, they had to cross an area inhabited by theMuzar tribe which was against the Muslims. Consequently, theBani `Abdu 'l-Qays could not travel safely to Medina except during the months in whichwar-fare was forbidden according to the Arab custom.

Once a delegation fromBani `Abdu 'l-Qays came to Medina and said to the Prophet,“We cannot come to you except in theharam months [when war-fare is forbidden], and there are between us and you the unbelievers ofMuzar .

Therefore, please give us some advice that we may give to those whom we have left behind and that we may enter the Paradise [by acting on it ourselves].” The Prophet advised them to believe in One God, establish prayer, payzakat , fast in the month ofRamadhan , and“to paykhums (one-fifth) of whatever you gain. 5

The circumstances of theBani `Abdu 'l-Qays -- they were weak and small in numbers, and were thus prevented from traveling safely to Medina -- leaves no room for interpreting the application ofkhums in the abovehadith on spoils of war exclusively.

* * *

Khums iswajib on seven items; but in thisbook we will discuss only two items:

(1)the profit or surplus of the income, and

(2)legitimate wealth which is mixed with some illegitimate wealth.

The reason for being selective in this discussion is that the other items eligible forkhums (for example, mines and minerals, precious stones and treasure) are not common to all people and, therefore, I decided not to burden thereaders which details about those items. Anyone who wants more information on rules of those items can contact the religious scholar in his or her local area or write to us.

Notes

1. See the entry under G-N-M; in the 28th edition of al-Munjid (Beirut: Dar el-Machreq , 1986) it is on p. 561.Also see other famous dictionaries likeLisan al-`Arab and al-Qamus .

2.Rizvi , S.S.A., Your Questions Answered, vol. 1 (Dar-es -salaam:Bilal Muslim Mission, 1973) p. 44-46.

3.Ibn Khaldun ,Ta'rikh , vol. 2, part II (Beirut: al-A`lami , 1971) p. 54;Ibn Kathir , al-Bidayah wa 'n-Nihayah , vol. 5 (Beirut: al-Ma`arif , 1966) pp. 76-77;Ibn Hisham ,Sirah , vol. 4 (Beirut:Daru 'l-Jayl , 1975) p. 179.

4. Abu `Ubayd , al-Amwal (Beirut:Mu'assah Nasir , 1981) p. 13; al-Hakim,Mustadrak , vol. 1 (Hyderabad: `Uthmaniyyya Press, 1340 AH) p. 395. For more references, seeJa`far Murtada al-`Amili , al-Sahih fi Sirati 'n-Nabi , vol. 3 (Qum:n.p , 1983) p. 309.

5.Bukhari ,Sahihu 'l-Bukhari , vol. 4 (Beirut:Daru 'l-`Arabiyyah ,n.d .) p. 213; Abu `Ubayd , al-Amwal , p. 13. Thishas also been recorded by other Sunni sources ofhadith likeSahih Muslim,Sunan Nisa'i ,Musnad of Ahmad binHanbal , andSunan ofTirmidhi .