Does the interest tax shield align with maqasid al Shariah in finance?

Zaman, Qamar Uz; Hassan, M. Kabir; Akhter, Waheed; Brodmann, Jennifer

doi:10.1016/j.bir.2018.07.004

Cited by 12 publications

(15 citation statements)

References 42 publications

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“…Finally, fiscal and financial policy should create an opportunity to de-emphasise the interest rate shield by Islamic financial institutions to make renewable-energy equity financing attractive. Zaman, Hassan, Akhter, & Brodmann (2019) contend that the interest shield contradicts the maqasid al Shariah and discourages equity financing. Therefore, fiscal policy should allow reframing of the tax shield in favour of equity financing through a tax credit in renewable energy investment/ financing.…”

Section: Figure 2 Energy Consumption Of Selected Countriesmentioning

confidence: 99%

Islamic Financial Development Impact on Energy Intensity: Evidence From Islamic Banks

Ibrahim

Shirazi

Mohseni-Cheraghlou

2021

JIMF

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The relationship between financial development and energy intensity is yet firmly established as the literature is emerging, and the few empirical studies that have been done provide conflicting results. Whereas some conclude a U-shaped relationship between financial development and energy intensity, others show a linear relationship between the two variables. This study investigates the relationship between financial development and energy intensity by focusing on the role of Islamic financial development. The study covers 30 countries where Islamic banks are present. Using the fixed-effects panel model, the empirical results suggest that Islamic banking development significantly increases energy intensity in the sample countries. We also identify other important factors that increase energy intensity. These include carbon emissions, renewable energy use and energy imports. The findings point to the importance of designing policies to incentivize Islamic banks and Shari'ah-compliant investors to finance clean energy technologies as a potent tool for reducing energy intensity, achieving sustainable development, and greening Islamic finance.

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Section: Figure 2 Energy Consumption Of Selected Countriesmentioning

confidence: 99%

Islamic Financial Development Impact on Energy Intensity: Evidence From Islamic Banks

Ibrahim

Shirazi

Mohseni-Cheraghlou

2021

JIMF

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“…Many scholars have examined the impact of business freedom, property right, culture, GDP, inflation, good governance, ethics, and so forth on tax evasion (Nurunnabi, 2018;Zaman et al, 2019). Their studies are limited either with the economic factors or with the non-economic factors leading to tax evasion.…”

Section: Introductionmentioning

confidence: 99%

Public policies and tax evasion: evidence from SAARC countries

Islam

Rashid

Hossain

et al. 2020

Heliyon

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In compliance with the socioeconomic theory, the study has strived to investigate the impact of economic and non-economic public policies on tax evasion using panel data of 7 SAARC countries covering the period from 1998 to 2015. The study has applied the ordinary least square with fixed effect and random effect models to analyze the data assembled. The result of the study implies that the higher the degree of economic freedoms, the lower the tax evasion. More specifically, the government policies about property rights, monetary freedom, fiscal freedom and investment freedom have a negative influence on taxpayers' choices of tax evasion while financial freedom result shows a positive effect on tax evasion. Additionally, there is a negative impact of public sector governance and religiosity on tax evasion, which implies the higher the public sector governance and the higher the religious faith amid the people, the lower the degree of tax evasion. The findings of the study are supposed to offer the governments, tax authorities, and research scholars the valuable insights into public policies for reducing the tax evasion to a significant extent.

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“…Debt is part of Islamic economic activities and according to the basic framework of Islamic economic activities including Islamic economic activities in the field of muamallah as illustrated in the following figure. As the main foundation of Islamic economic operations is maqosid sharia or refers the laws related to life activities and practices for the benefit of humanity (Mushlihin 2011) and the target maqosid shariah is the belief in Islam, and human economic life is essentially to fulfill religious obligations, and ultimately religious, social and economic activities to achieve prosperity (faalah) (Haman and et.al. 2019).…”

Section: The Basic Concept Of Islamic Economicsmentioning

confidence: 99%

“…Imam ash-Syathibi argues there are three main laws in maqosid shariah namely daruriyat (emergency) to provide satisfaction in fulfilling the necessities of life, habitat (secondary needs) to prevent violence and tahsiniyat (perfect) for the comfort, and improvement of human life; and in daruriyat that must be fought for is religion (al-din), life (al-nafs), intellectual (al-'aql), descendants (al-nasl), and wealth (al-mal) (Muzlifah 2013). While the general grouping of maqasid shariah according to al-Ghazali there are five basic elements namely religion (al-din), life (al-nafs), intellectual (al-'aql), descendants (al-nasl), and wealth (al-mal) (Haman and et.al. 2019).…”

Section: The Basic Concept Of Islamic Economicsmentioning

confidence: 99%

Debt in the Perspective of Islamic Law

Yunus

Muslimin

2020

JSEI

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The goal of this paper is to analyze the debt from view of Islamic law. Debt is one of the muamalah instruments in Islam that used for activities in household, companies, and countries to fulfill their life sustainability. At least in two things. First in the fulfillment of the fifth pillar of Islamic obligations, pilgrimage, but there is a polemic using debts because of the additional administrative costs (ujrah). The other side of the polemic of debt in the economic system of Islam even could prevent the world economic crisis, the global economic crisis due to debt plus interest in exchange in the capitalist economic system, but not use Islamic economic system in the world. The method used is a normative method and the analysis shows debt could be for bailout funds for pilgrimmage program as long as the debtor pay this loan as soon as possible, debt is the last option and the value of debt should be measured in accordance with the ability to avoid further misery and debt can provide economic value as long as it is used for business or trade to achieve the world welfare, and the hereafter without performing maisir, farad, usury and tyranny. Sodaqoh and giving sincerely is better than giving debt.

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Does the interest tax shield align with maqasid al Shariah in finance?

Cited by 12 publications

References 42 publications

Islamic Financial Development Impact on Energy Intensity: Evidence From Islamic Banks

Islamic Financial Development Impact on Energy Intensity: Evidence From Islamic Banks

Public policies and tax evasion: evidence from SAARC countries

Debt in the Perspective of Islamic Law

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