Islamic Economic Development in the Context of Islamic Tax: A Literature Review

An important factor in a nation's development is its economy. Islam places a strong emphasis on the necessity to gather resources in order to propel the economy towards prosperity and advancement. Islamic economics is a system founded on the Hadith and the Quran that strikes a balance between material and spiritual requirements. Islamic economics has tax systems like jizyah, kharaj, and ushur that, when correctly implemented by the government, can improve economic conditions. However, taxation in Islam has not received full attention. This literature review focuses on examining previous studies on taxation in Islam and evaluating the strengths and weaknesses of past research. The study adopts a library research approach and is based on a literature review. With this study, it is hoped to assist the Malaysian government in formulating a clearer and Sharia-compliant tax system in Malaysia that is undoubtedly perfect and fair for all Malaysian citizens.