Ushur is a religious tax levied in early Islam on agricultural crops and commercial goods. It was levied at a rate of 10% on crops if the land was naturally irrigated by rainwater, and at a rate of 5% if it was irrigated by artificial means that required money and labor. The concept of Ushur was later expanded to include a tax on trade, levied on merchants' goods at a rate of 10% of their value when imported or exported across the borders of the Islamic state. The initiative to establish and systematically organize Ushur is attributed to Umar ibn al-Khattab, who broadened its application to include not only agricultural crops but also border trade. During the Umayyad era, this system continued as part of the Islamic tax structure, which also included other taxes such as the Jizya on non-Muslims and the Kharaj on land. Ushur, along with Zakat, Jizya, and Kharaj, formed the backbone of revenue for the state treasury (Bayt al-Mal) in early Islam. Its imposition was based on established Islamic principles aimed at achieving justice, the circulation of money, and the provision of protection and services. This study aims to clarify the concept of tithes in early Islam, examine the opinions of Islamic jurists regarding their rates, who is subject to them, and who is exempt. Finally, it analyzes the impact of tithes on the state's general budget and public spending. To achieve this objective, the study employs a descriptive-analytical methodology. The findings indicate that the tithe amounts due from Muslims, non-Muslims living under Islamic rule (dhimmi), and non-Muslims at war with Muslims are fixed according to the majority of scholars. In contrast, the amounts levied on commercial taxes vary depending on the nature of the trade and the extent of need and necessity, as what is based on necessity and need is determined accordingly.
Keywords: Islam, trade, taxes, tithes.
Introduction
The study of financial systems in early Islam is one of the most prominent topics that touches upon the very essence of the nascent Islamic state, wherein the genius of organization and the balance between the objectives of Sharia and the demands of reality were clearly manifested.The concept of Ushr (tithes/customs duties) arose in the Arab environment, which already knew the system of Maks or customs duties on trade caravans. However, Islam reformulated it according to a different vision, making it an act of worship and a means of drawing nearer to God before it became a right of the ruler. In Medina, as the territory of the Islamic state expanded, the need arose to regulate relations with Muslims and non-Muslims, and to secure resources for the public treasury (Bayt al-Mal) without overburdening the subjects. Thus, the Ushr were organized as evidence of the flexibility of Sharia and its ability to accommodate economic interests within strict ethical controls; it avoided injustice and oppression, and linked the rate (2.5%, 5%, or 10%) to land ownership (Ushri or Kharaji land), the method of irrigation (rain-fed vs. irrigated), and the status of the taxpayer (Muslim or Dhimmi). For Muslim merchants, the rate was 2.5% (quarter of the tithe), while it reached 5% for Dhimmi merchants, and 10% on the produce of rain-fed lands. The importance of the Ushr goes beyond being mere financial revenue; it reflects Islam's vision of economic development based on mobilizing capital, preventing monopolies, providing market protection, and supporting the poor and wayfarers. Studying the early Islamic Ushr is not merely a recollection of the past, but a means of drawing inspiration from principles that can offer contemporary solutions to issues of tax justice, combating tax evasion, and balancing trade freedom with social responsibility. Questions regarding tax rates, collection methods, exemptions, and taxpayer rights remain open to dialogue and renewal, like any human financial system. However, the Islamic value framework provides fixed controls that do not conflict with changing times and places, based on the principle: "No harm nor harassment", and its ultimate goal: achieving the welfare of the servants of God in this life and the hereafter.
Materials & Methods
The Ushr tax in early Islam represents a unique system that expresses the genius of the financial organization of the nascent Islamic state. Ushr is defined as what is taken from trade goods, whether the amount taken is literally a tenth, half of it, a quarter of it, or whatever the state takes from merchants passing through its territory to other lands. The roots of this tax go back to the pre-Islamic era, as the kings of the Arabs and non-Arabs used to take a tenth of the goods of merchants passing through their lands.This study aims to clarify the Ushr tax in early Islam, monitor the opinions of jurists regarding its rates, who it includes, who is exempt from it, and finally, to analyze its impact on the state's public budget and spending on public welfare. To achieve this goal, the study adopts the descriptive-analytical approach.
Discussion & Result
The emergence and development of the Ushr system is a fascinating chapter in Islamic financial history and an excellent example of the flexibility of legislation and its responsiveness to the needs of the state and society. The evolution of this system can be traced through several main phases: Pre-Islamic Era: The tax had roots in pre-Islamic financial practices, known specifically as 'Ushr or Maks, where some kingdoms took this amount from transit trade, similar to today's customs duties. Prophet Muhammad's ﷺ Era: He abolished this system as it was considered a custom of pre-Islamic ignorance (Jahiliyyah), relying solely on Zakat and war spoils (Ghanima). Abu Bakr's Era: He followed the same approach, relying only on legitimate Sharia resources. Umar ibn al-Khattab's Era: The expansion of the Islamic state and the imposition of taxes by the Romans le d to the search for a mechanism of reciprocity. Umar ibn al-Khattab imposed the Ushr system, relying on the authority of the Imamate and sovereignty (Imarah wa Sultana) to achieve justice. Later Developments: The system was later expanded to include domestic trade and other sources such as ships. The system remained in place during the Umayyad era with the same basic rates. In the Abbasid era, the Ushr included maritime trade and became a fixed customs system before changing with other economic updates. Several questions branch out from this topic, most notably: How was harmony achieved between the Ushr being both a commercial tax and a financial Zakat at the same time? What are the boundaries separating the Ushr from other systems such as Kharaj and Jizya? What was the impact of this tax on the relationship between Muslims and Ahl al-Dhimma (non-Muslim subjects), and on the development of the Islamic economy?
Conclusion
Pre-Islamic Origin of the Tax: Studies have concluded that the Ushr were not a pure Islamic innovation but were a known practice in the Arabian Peninsula and neighboring regions, where kings and tribal leaders used to take a tenth of the goods of merchants passing through their lands. Organization by Umar ibn al-Khattab: Sources agree that Caliph Umar ibn al-Khattab was the first to institutionally organize the Ushr tax, making it a clear financial system that takes into account the different statuses of the taxpayer (Muslim, Dhimmi, Musta'min) and the different types of goods.Differentiation between Categories of Taxpayers: Muslim: Was exempt from the Ushr if he did not trade his money repeatedly. But if he was a traveling merchant, the same was taken from him as was taken from the Dhimmi (i.e., a tenth or half a tenth).Dhimmi (non-Muslim subject): The full Ushr was imposed on him (10% if the value of goods exceeded the Nisab threshold, or 5% if less) without it being deducted from their Jizya.Musta'min (foreign enemy trader): He was subject to the same duties imposed on Muslim merchants in their own lands, in implementation of the principle of reciprocity.Financial Impact on the Public Treasury: The Ushr – especially after the conquests – significantly contributed to increasing the Islamic state's revenues, enabling it to finance armies, build public utilities, and support the poor and wayfarers, alongside Zakat, Kharaj, Jizya, and Fay'.Protective Function for the Local Economy: Studies concluded that the Ushr played an undeclared protective role, particularly when applied to imported goods that competed with local products, which helped encourage industry and agriculture within the Islamic domain.Flexibility in Practical Application: The system was not rigid; researchers found that governors and judges tended to ease the Ushr on poor merchants or during times of economic depression, and sometimes exempted scholars and pilgrims coming for Hajj and Umrah from paying it.Foundation for Later Financial Jurisprudence: The provisions of the Ushr that were settled in early Islam (the era of the Rightly Guided Caliphs and early Umayyads) are considered the nucleus of what later developed in the jurisprudence of Kharaj and public finance in the major schools of Islamic jurisprudence, especially at the hands of Abu Yusuf in his book "Kitab al-Kharaj".Weakening of Ushr Application in Later Eras: The results indicate that with the expansion of the Islamic state and the increasing complexity of the trade system, the Ushr tax began to overlap with other innovated taxes and duties (Mukus), until it lost its original clarity. Contemporary scholars have returned to studying it as an example of a just financial system in early Islam. Contemporary Lessons: Contemporary researchers conclude that the Ushr system provides a model for fair customs taxation based on differentiation between citizens, foreigners, and protected subjects (Mu'ahad), with a maximum ceiling (10%) and a minimum (2.5% – half the tithe), which achieves a balance between protecting the local market and encouraging trade exchange.