The New World Order of Islam — Page 91
New World Order 91 the community. It may be urged that the three principles to which I have so far made reference no doubt secure that property and wealth should be continuously divided and sub-divided, and money should be put into circulation so as to prevent its accumulation in a few hands, but they make no provision for the direct relief of poverty and distress. The answer is that Islam supplements these with a fourth principle by providing for compulsory levies and encouraging voluntary contributions for the relief of poverty. Under the institution of Zakat, it is the duty of an Islamic State to levy a tax of 2. 5% on average upon all wealth and capital which has been in the possession or under the direction of an assessee for one year. The proceeds of this tax must be devoted exclusively towards the relief of poverty and the raising of the standard of living of the poor. It must be noted that this tax is to be levied not merely upon the income or profits, but on capital and accumulations, so that sometimes this 2. 5% may amount to as much as 50% of the income or profits, and in the case of accumulations has to be paid out of the accumulated money. This also has the effect of encouraging investment, for, if a person has a certain amount of money accumulated in his hands or lying to his credit,