Islamic Sharia has considered several principles in determining the taxation system it adopts. We can highlight seven principles here.
1. The tax imposed must be proportionate to the buying power of tax payers.
2. The tax due must be precise, obvious, and fixed with the payment time exactly determined.
3. Maximum facilitation of tax payment must be planned and complications and problems leading to tax payers’ discontent minimized.
4. The cost of tax collection must be minimized.
5. Tax role and function must be premeditated.
6. Tax must not leave adverse effects on economic activities for wealth production.
7. Taxation system must pursue social ends.