The Principles of Public Finance in Islam: The Study of Zakat and Taxes

Abstract

Baitul maal is a deposit of wealth whose allocation is for the public interest, as well as public finances or in other terms, state finances. In the management of public finances, a financial concept whose allocation is right on target. In Islam, the allocation of the use of public finances is for many people, it can be in the form of public facilities or the form of demands for shared responsibility, based on Islam. There are several sources of public financial income in Islam, including zakat and taxes. The purpose of the existence of public finance in Islam is the welfare of society. There are different characteristics between public finance in Islam and public finance in the conventional view. The difference is on the policy side in determining financial principles, including instruments and allocations. Several instruments in public finance in Islam include zakat, infaq, kharaj, waqf, taxes, and state assets with different distribution allocations. Likewise, the basic principles of public finance in Islam are based on Islamic values ​​which are not considered conventional financial considerations.