192 chapter five
The shares of the poor and destitute must be distributed to those
entitled to receive them from the people who live in the town where
the Zakàh was collected, and should not be given to those of other
localities.
Interestingly enough, Abù-Yùsuf treated the administration of Zakàh
under a separate chapter, “The increase, decrease and loss of Zakàh
revenue”. By doing that, Abù-Yùsuf emphasised the need for the
proper administration of Zakàh.
The administration of both Zakàh and Kharàj would have had
several implications on compliance costs, the administrative burden,
and the net benefit of the tax. In the absence of the state discretion
with regard to the tax rate or base, the net revenue of tax can be
increased by minimising administrative costs and potential waste of
revenue through efficiency; hence, maximising the tax net revenue.
This brings to mind “efficiency” as one of the four emphases in
Adam Smiths’ cannons of taxation of which the other three are cer-
tainty, fairness and clarity (Adam Smith, Wealth of Nations). In fact,
bearing in mind all that Abù-Yùsuf wrote in his book on taxation,
it can be said that Adam Smith’s four cannons of taxation are cer-
tainly included in Kitàb al-Kharàj.
Jizyah
In addition to investigating Zakàh taxation on Muslims, Abù-Yùsuf
examined the Jizyah taxation on non-Muslims. In a similar fashion
he reiterated the ruling of the Sharì"ah regarding the base and the
tax rate, emphasising that although it was a tax per head the ability-
to-pay of the tax payer was to be taken into consideration: 48 dirhams
per annum on the wealthy, to be halved to 24 on those on middle
incomes, and this to be halved to 12 on the labourer unless he had
wealth. Children, women, the poor and recipients of charity, monks
unless they were wealthy, were exempt. In case of dispute over the
level of wealth and in the absence of hard evidence an oath taken
from the man according to his sacred book would be sufficient. Other
rules stating that Jizyah was not a debt on the deceased to be
deducted from his legacy, conversion to Islam before and after the
expiry of the one-year-period, and the importance of exercising
leniency in collection were stressed. Aœadìthreporting the Prophet as
saying that he would be the advocate of the oppressed Jizyah payer
in the Day of Judgment were quoted.