Wealth

Generally, nowadays, a tariff is a tax imposed by a government on goods and services imported from other countries. Its primary purpose is to raise the cost of foreign products, making them less competitive compared to locally produced goods. Tariffs are a fundamental instrument in international trade policy and have been used historically both to protect domestic industries and as a political weapon. Originally, the word tariff has an intriguing linguistic lineage—one that bridged the Islamic East with the Christian West. In the context of the modern West, tariff is connected to the Italian word tariffa, meaning “list of prices or taxes.” However, the word originates from the Arabic word ta`ārīf (تعاريف), meaning “notifications” or “definitions” — which itself referred to a list of customs duties. This etymology reflects the deep historical links between trade and taxation in the Mediterranean and Southwest Asia regions, where merchants and empires developed early customs systems to regulate the flow of goods. Initially, tariffs were institutionalized in the emerging Islamic civilization. But one of the earliest formal systems of trade duties can be traced back to the time of the Prophet Muhammad, who established rules to regulate commerce fairly in accordance with Islamic principles of justice and equity. Under Islamic governance, the caliphate, tariffs applied to state revenues above and beyond the religiously mandated taxes, called zaka and sadaka. These extra, non-religious taxes, ta`rifa, were also known as `ushr (a 10% tax on certain imports for non-Muslims) and khums (a tax of one-fifth on […]