Iltizam

The iltizam system, a unique tax collection method utilized in the Ottoman Empire, designated particular individuals with the duty of tax collection, providing them with a privileged status to carry out this task. This system persisted throughout the empire’s reign until the establishment of the Republic of Turkey. Under this tax collection model, the state would transfer revenues from muqataa units, which were determined by both statutory and Islamic law, for a limited time in exchange for an annual fee established through auction. A portion of that fee would then be returned to the state. Despite undergoing several adjustments, the fundamental structure of the model remained relatively constant, with competition playing a crucial role. The multezim, who was responsible for collecting taxes, could belong to different social groups, including the military, civilians, citizens, or even foreigners. Advance payments were customary, with the amount depending on treasury demands and competitive dynamics. Iltizam’s roots in the Ottoman Empire can be traced to the latter half of the fifteenth century, quickly expanding from the early sixteenth century. The model’s key features consisted of candidates proposing sums, advance payments, lists of guarantors, and required conditions for participation. The highest bidder, who met specific criteria, secured the rights to collect taxes. Malikane, a novel system trialed between the late seventeenth and mid-nineteenth centuries, instituted lifetime rights to collect taxes (iltizam). This change greatly transformed the multezim’s features and interactions, resulting in favorable economic effects, like enhanced backing for productive initiatives. Over time, the system resulted in a greater tax burden and income transfer from the production sector to rentier classes. In the early nineteenth century, there was a brief effort to centralize tax revenue, which supported modernization initiatives. Despite undergoing various reforms, Iltizam remained intact until its complete abolition in 1925, signifying a significant shift in tax collection methods during the Republican era.