IDEAS home Printed from https://ideas.repec.org/a/spr/jenvss/v13y2023i1d10.1007_s13412-022-00806-5.html
   My bibliography  Save this article

An examination of environmental taxes from the Islamic and Shariah perspectives

Author

Listed:
  • Yasser A. AL-Rawi

    (University of Anbar)

  • Yusri Yusup

    (University Sains Malaysia)

  • Essa Ahmed

    (Karabuk University)

  • Ali F. Ali

    (University Technology Malaysia)

  • Sofri Bin Yahya

    (University Sains Malaysia)

Abstract

The main objective of this paper is to seek an Islamic perspective on environmental taxes. The paper infers the significance (and legitimacy) of environmental taxes. A qualitative approach, based on in-depth semi-structured interviews, was selected as the research method for this study. The nine respondents in this study were selected based on their experience and basic knowledge of Fiqh Al Muamalat and its practical applications within the Islamic finance system. The Holy Qur’an, the authentic Sunnah, and the views of past and contemporary Islamic scholars on the issue of environmental taxes were also sought and utilized as part of the methodology. The findings of this study showed that the respondents held different views regarding the legitimacy of environmental taxes. One group stated that there is no legitimate impediment to the imposition of environmental taxation because it can be considered a fine or penalty for those who damage society and the environment and is therefore justifiable. In addition, if the tax is used to adopt pollution-fighting measures, it will be more Shariah-compliant, as it will be considered to be in the interest of the public good. By contrast, the second group had a different view. Although this study was not comprehensive, it is significant because it forms the genesis for future studies on the subject. This paper enhances the theoretical understanding of the tax system and environmental protection used by organizations within the Shariah framework. It adds a new discussion to the body of knowledge by examining environmental taxes from the perspective of Shariah, which is noticeably absent from the literature and a novelty in the case of both emerging and developed economies due to the lack of empirical studies on the subject. This approach is expected to enlighten the Islamic countries and encourage governments, policy makers, and society (individuals and corporations) to contribute knowledge and clarify the determinants and legitimacy of environmental taxes for prospective scholars.

Suggested Citation

  • Yasser A. AL-Rawi & Yusri Yusup & Essa Ahmed & Ali F. Ali & Sofri Bin Yahya, 2023. "An examination of environmental taxes from the Islamic and Shariah perspectives," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 13(1), pages 141-155, March.
    • Handle: RePEc:spr:jenvss:v:13:y:2023:i:1:d:10.1007_s13412-022-00806-5
    DOI: 10.1007/s13412-022-00806-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13412-022-00806-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13412-022-00806-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Katri Kosonen & Gaëtan Nicodème, 2009. "The role of fiscal instruments in environmental policy," Working Papers CEB 09-026.RS, ULB -- Universite Libre de Bruxelles.
    2. Roszaini Haniffa & Mohammad Hudaib, 2007. "Exploring the Ethical Identity of Islamic Banks via Communication in Annual Reports," Journal of Business Ethics, Springer, vol. 76(1), pages 97-116, November.
    3. Tulus Suryanto & Femei Purnamasari & Mohamad Kurniawan, 2018. "Tax Revenue and Disparity: How to Improvement Income Inequality in Islamic Perspective," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 5(2), pages 65-71.
    4. Rania Kamla & Sonja Gallhofer & Jim Haslam, 2006. "Islam, nature and accounting: Islamic principles and the notion of accounting for the environment," Accounting Forum, Taylor & Francis Journals, vol. 30(3), pages 245-265, September.
    5. Riham R. Rizk, 2014. "Islamic environmental ethics," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 5(2), pages 194-204, September.
    6. Pinglin He & Jing Ning & Zhongfu Yu & Hao Xiong & Huayu Shen & Hui Jin, 2019. "Can Environmental Tax Policy Really Help to Reduce Pollutant Emissions? An Empirical Study of a Panel ARDL Model Based on OECD Countries and China," Sustainability, MDPI, vol. 11(16), pages 1-32, August.
    7. Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March.
    8. Ram Al Jaffri Saad & Roszaini Haniffa, 2014. "Determinants ofzakah(Islamic tax) compliance behavior," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 5(2), pages 182-193, September.
    9. Akhtar, Muhammad Ramzan, 1996. "Towards An Islamic Approach For Environmental Balance," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 3, pages 57-76.
    10. Rafic Yunus AI-Masri, 2006. "Zakah and Taxes on Muslims and Non-Muslims الزكاة والضرائب على المسلمين وغير المسلمين," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 19(1), pages 47-71, January.
    11. Tulus Suryanto & Femei Purnamasari & Mohamad Kurniawan, 2018. "Tax Revenue and Disparity: How to Improvement Income Inequality in Islamic Perspective," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 5(2), pages 65-71.
    12. Ian W.H. Parry & Mr. John Norregaard & Mr. Dirk Heine, 2012. "Environmental Tax Reform: Principles from Theory and Practice to Date," IMF Working Papers 2012/180, International Monetary Fund.
    13. Essia Ries Ahmed & Md Aminul Islam & Tariq Tawfeeq Yousif Alabdullah & Azlan Bin Amran, 2019. "A qualitative analysis on the determinants of legitimacy ofsukuk," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 10(3), pages 342-368, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chaudhry Ghafran & Sofia Yasmin, 2020. "Ethical Governance: Insight from the Islamic Perspective and an Empirical Enquiry," Journal of Business Ethics, Springer, vol. 167(3), pages 513-533, December.
    2. Riaz, Umair & Burton, Bruce & Fearfull, Anne, 2023. "Emotional propensities and the contemporary Islamic banking industry," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 94(C).
    3. Jean Andrei & Mihai Mieila & Gheorghe H. Popescu & Elvira Nica & Manole Cristina, 2016. "The Impact and Determinants of Environmental Taxation on Economic Growth Communities in Romania," Energies, MDPI, vol. 9(11), pages 1-11, November.
    4. Chengli Shu & Hammad Bin Azam Hashmi & Zhenxin Xiao & Syed Waqar Haider & Mishal Nasir, 2022. "How Do Islamic Values Influence CSR? A Systematic Literature Review of Studies from 1995–2020," Journal of Business Ethics, Springer, vol. 181(2), pages 471-494, November.
    5. Zakaria Ali Aribi & Thankom Arun, 2015. "Corporate Social Responsibility and Islamic Financial Institutions (IFIs): Management Perceptions from IFIs in Bahrain," Journal of Business Ethics, Springer, vol. 129(4), pages 785-794, July.
    6. Khaled O. Alotaibi & Mohammad M. Hariri, 2021. "Content Analysis of Shariah-Compliant Investment Equity Funds in KSA: Does Social Justice Matter?," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(6), pages 1-1, July.
    7. Osman, Mohamed & Gallhofer, Sonja & Haslam, Jim, 2021. "Contextualising and critically theorising corporate social responsibility reporting: Dynamics of the late Mubarak Era in Egypt," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 74(C).
    8. Alberto Gago & Xavier Labandeira & Xiral López Otero, 2014. "A Panorama on Energy Taxes and Green Tax Reforms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 145-190, March.
    9. Esposito, Piero & Patriarca, Fabrizio & Salvati, Luca, 2018. "Tertiarization and land use change: The case of Italy," Economic Modelling, Elsevier, vol. 71(C), pages 80-86.
    10. Francesco Vona & Francesco Nicolli & Lionel Nesta, 2012. "Determinants of renewable energy innovation: environmental policies vs. market regulation," Sciences Po publications 2012-05, Sciences Po.
    11. Zhibo Zhou & Weiguo Zhang & Xinxin Pan & Jiangfeng Hu & Ganlin Pu, 2019. "Environmental Tax Reform and the “Double Dividend” Hypothesis in a Small Open Economy," IJERPH, MDPI, vol. 17(1), pages 1-21, December.
    12. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    13. Nicolli, Francesco & Vona, Francesco, 2012. "The Evolution of Renewable Energy Policy in OECD Countries: Aggregate Indicators and Determinants," Climate Change and Sustainable Development 130897, Fondazione Eni Enrico Mattei (FEEM).
    14. C. Seri & A. de Juan Fernandez, 2021. "The relationship between economic growth and environment. Testing the EKC hypothesis for Latin American countries," Papers 2105.11405, arXiv.org.
    15. Giliberto Capano & Andrea Lippi, 2017. "How policy instruments are chosen: patterns of decision makers’ choices," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(2), pages 269-293, June.
    16. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h0ji242 is not listed on IDEAS
    17. Shibing You & Bi Wu & Ping Shen, 2015. "Government factors that influence the relevance between environmental and economic growth," Annals of Operations Research, Springer, vol. 228(1), pages 35-45, May.
    18. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    19. Ji, Chen & Chen, Shuai & Jin, Songqing, 2018. "Impact Evaluation of “Regulation on water pollution from livestock and poultry production” -- the case of livestock sector in China," 2018 Annual Meeting, August 5-7, Washington, D.C. 273863, Agricultural and Applied Economics Association.
    20. Kaouther Toumi Lajimi & Rana El Bahsh & Serge Agbodjo, 2017. "The determinants of bank profitability, does Islamic ethics perspective matter ? A comprehensive study on Islamic banks vs. Conventional ones," Post-Print hal-04109833, HAL.
    21. Setareh Katircioglu, 2022. "Estimating the role of urban development in environment quality: Evidence from G7 countries," Energy & Environment, , vol. 33(2), pages 283-314, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jenvss:v:13:y:2023:i:1:d:10.1007_s13412-022-00806-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.