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The objective of Islamic firm is not to earn profit but to seek Allahs
pleasure . Not to use unlawful means of earning wealth
Just prices come natural to Islamic economic system. The more the
Islamic system is dominated by Islamic values the more will it enforce
just prices.
System of zakat, waqf, inheritance, maintains the purchasing power
of people
price control/ taseer
Measures taken by the government to overcome inflation is called
taseer.
In Islamic economy both the consumer and producer should have
high moral qualities and avoid creating unjust prices.
Inflation is created due to natural calamities, crisis in international
market, or through hoarding.
Methods for price control
If prices rise due to natural causes, the government must not impose
price control.
If traders and producers are responsible for the price hike, then
government should play its due role in bringing prices down




Distribution of wealth in Islam
Wealth is created by factors of production. Every factor gets their
due share.
The prosperity of society depends on how wealth circulates in the
society. Wealth must not condense in few hands. In most case there
is disequilibrium in the society.
In Islamic economy every possible measure is taken for the just
distribution of resources.
Quran and circulation of wealth
Normally the capitalist spend capital and accrue high profit contrary
to salaried class, and daily wage earners, ultimately resulting into the
accumulation of wealth in few hands.
According to Quranic injunctions
Wealth should circulate continuously in the society
Wealth should circulate in every class of the society
Circulation of wealth should be regulated by moral principles of
Islam.

Quranic verses
Doomed is every such person who slanders others (in their face) and
backbites them habitually, who thinks that his wealth will remain
with them forever. Nay never , He shall be hurled into the crushing
place
(this is ordained) so that it (wealth) doesnt remain circulating
among your rich people only


Rent of land
Private ownership of land is recognized by Islam subject to certain
conditions
Right to use and consumer goods
Right to invest wealth in business in order to earn more profit
Right to transfer ownership
Right to protection
Right to accumulate wealth
Islam allows renting out of durable goods not perishable goods.
The renting of agricultural land is LAGAN. Only productive land can
be rented out not the barren or saltic. If agricultural land becomes
non productive due to factors beyond the power of tenant, the
tenant shall not be liable to pay its lagan.

Rent/ lagan
Is the amount of compensation which a cultivator pays in lieu of the
use of land to its owner after a fixed period?
ISLAMIC DOCTRINE OF LAGAN
Is based on three principle
Justice, benevolence, no injustice
(o Muslims) Allah commands you to do injustice and benevolence
To levy lagan on cultivator according to their ability. Benevolence
requires the lagan should be collected only when the produce of land
is in excess of their needs. If produce falls short, lagan should be
remit.
Benevolence is the very core of Islamic economics system
therefore try to excel one another in good deeds
One should keep in mind the principle of justice while fixing the lagan
do no wrong and no wrong will be done to you



Fixing the rate of lagan
The Islamic state while fixing the rate of lagan should safeguard the
interest of cultivator and owner shall keep in view three points
Productivity land
Welfare of cultivator (capacity to pay)
Cost of cultivation
Difference of land, difference of crops, difference in irrigation.
Hazrat umar had specially directed to the governors of subdued
provinces to pay special heed to fixing of lagan.
At eve of victory of Khyber, Prophet (pbuh)sent Abdullah bin rawah
(R.A) to share equally the crop between Jews and Muslims