How the Khilafah will ensure economic power to the citizen

I.  TOWARDS ELIMINATING POVERTY AND HUNGER

The government is obliged by the Shari'ah to target the elimination of poverty by placing the full resources of the state towards this end.

A comprehensive poverty elimination programme would be put in place immediately, as detailed below.

Anyone without food and other basic needs will be able to contact a local department where the responsibility for assistance will be allocated in the following order:

1. Establishing that the individual is unable to work or otherwise unable to support himself

2. Determine why immediate family have not assisted

3. Assess the ability of neighbours and the local community to assist

4. Failing all these State Treasury funds will be made available

It is worth pointing out that the Shari'ah allows a hungry person who cannot afford food to take food from a shop or market without payment and without punishment. Muslim citizens cannot accept that a single individual (Muslim or non‐Muslim) be in poverty even for a day.

II.  GETTING RID OF THE TAX BURDEN

Citizens pay a huge amount of tax via sales and income taxes which siphon resources from the economy. This taxation is grossly unfair as it does not take into account the spending needs of the person. The taxation regime will be simplified with immediate effect with most people paying only Zakat on excess unspent wealth above the nisab at the end of the year – the poor will pay NO taxes.

E.g. In Egypt EGP 92.4 billion (approx. USD 16.22 billion) is collected annually in income tax.

This money would be available to spend for citizens including business owners ‐ they would be incentivized to earn more and spend more thus boosting economic activity, by the imposition of hoarding penalties.

III.  MAXIMISING EMPLOYMENT AND ENTERPRISE

The government policy will reflect the Shari'ah motivation for every able bodied person to either work or trade to support themselves and their families.

The government would not accept over 3 million people from the labour force unemployed as is the case today in Egypt. Education, training and start‐up funds will be provided to achieve the full earning potential of each citizen.

The Shari'ah does not permit an able bodied individual to neglect financial obligations to themselves and their families.

IV.  Promoting the creation of large and vibrant charity sector

Charity whether donation or interest‐free loans is highly recommended in Islam – simultaneously releasing, circulating and redistributing wealth.

The government will promote the creation of a large and vibrant charities sector in order to channel the public desire to seek their Creator's pleasure into projects that assist communities.