The role and significance of Ushr in agricultural taxation policy in Muslim economies

Tax policies relating to the agricultural sector of developing economies must be given careful consideration. The concept of Ushr can help guide tax policies in Muslim countries in particular. Before a rigorous taxation mechanism can be implemented, a preliminary assessment of agricultural conditions in Muslim countries must be made. Agricultural taxation policies must be designed with the objectives to: increase production, increase the domestic market for farm products, increase employment, increase equity of land distribution, increase capital investments, and increase government revenue. Various measures can be taken to achieve those objectives. Ushr is a fixed levy on agricultural production used exclusively for social welfare programs. Ushr funds should be coordinated with other taxation measures in order to better achieve the main objectives and better combat poverty. While Ushr can potentially spur greater output among farmers, it may turn regressive unless additional taxes a