Ibn Khaldun’s Theory of Taxation and its Relevance Today

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Figure 1: The imaginary portrait of Ibn Khaldun in a Tunisian 10 Dinar banknote. (Source).

Ibn Khaldun's theory of taxation has been considered an original and one of his most important contributions to economic thought. It is his theory of taxation that has cemented his position in the history of economics. The present paper has a limited scope. It aims at an analytical study of this theory. It is only one aspect of Ibn Khaldun's host of economic ideas. It also attempts to present empirical evidence that may support and strengthen his theory of taxation. Finally the paper examines its practicality and relevance today. But at the outset, as a background knowledge, it briefly presents Ibn Khaldun's life sketch, introduces his most outstanding work the Muqaddimah and the economic ideas found in this work. Since Ibn Khaldun's discussion of taxation is mixed with his discussion of expenditures of government at various stages, and they provide justification for taxation, this aspect has also been dealt with before taxation.

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