Fiscality.-As already pointed out zakat is not at all almsgiving or charity, but the State tax, covering practically the entire fiscal system imposed on Muslim subjects. It is significant that the Qur'an prescribes no details as to the income, but gives very precise directions regarding the expenditure of the State. The implication seems to be that the government may have a free hand in increasing the revenues, but in matters of expenditure it should not deviate from the principles of a welfare State. The expenditure of zakat is much more important. The Prophet of Islam ordained that the income of zakat is religiously forbidden (haram) to him, to his family, to his tribe, and to the allies of his tribe. If the Head of the State is so scrupulous and does not abuse public confidence in money matters entrusted to his care, subordinates would be the less tempted to corruption. Further, the Qur'an has ordered that taxes should be spent under eight main heads of expenditure. They are to be levied only for the poor, the needy, the wayfarer, those who work for the State revenues, and those whose hearts are to be won, also for freeing the necks, and the heavily indebted, and for use in the path of God.
According to such a high authority as the Caliph Umar, ‘f ugara' (the poor) are those who belong to the Muslim com¬munity, and masakin (the needy) are from the non-Muslims. It is to be noted that the taxes do not come from the non-Muslims, yet the needy among them are the beneficiaries of these taxes paid only by the Muslims.
Those who work are the collectors, accountants, and controllers of expenditure, auditors, and others, embracing practically the entire administrative machinery of the State.
Those whose hearts are to be won may be of many kinds. The great jurist alm Ya'la al-Farra' observes: "Those whose hearts are to be won are of four kinds: (i) those whose hearts are to be reconciled for coming to the aid of the Muslims; (ii) those whose hearts are to be won in order that they abstain from doing harm to the Muslims; (iii) those who are attracted towards Islam; and (iv) those by whose means conversion to Islam of the members of their tribes becomes possible. It is lawful to benefit each and every one of those whose hearts are to be won, be they Muslims or polytheists."
By the term "freeing the neck," jurists have always understood the emancipation of slaves (which is a duty of the State!) and ransoming the prisoners of war, be they Muslim or non-Muslim subjects of the Muslim State.
Aid to those who have heavy debts or great burdens may be given in different ways. The Caliph Umar organized even a service of interest-free loans.
Expenditure "in the path of God" includes every charitable act, and the jurists from very early times have not hesitated to mention military equipment for the defense of Islam as the first item, since Islam struggles solely for the establishment of the kingdom of God on earth.
As for the wayfarers, one can help them not only by giving hospitality to them, but also by ensuring them physical well-being and comfort, providing means of communication, security of routes, and taking all other measures for their well-being, be they countrymen or strangers, Muslims or non-Muslims.
These items are wide enough to embrace practically all the requirements of a welfare State.