Tax Rate and its Determinants: An Opinion from Ibn Khaldun

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Appendix A: Background of Ibn Khaldun

Ibn Khaldun's real name was Abd al-Rahman ibn Muhammad ibn Muhammad ibn Khaldun. According to Riza (2008) he was born in Tunisia (1 Ramadan 732 H / 27 May, 1332 AD) and died in Cairo, Egypt (26 Ramadan 808 H / 16 March, 1406 AD). He received his early education in Tunisia. In 1382 AD, Abbadi (2008) said that he travelled to Cairo where he was appointed professor of law at the University of Al-Azhar, and later he became a judge, a position he held until he died. Islahi (2006) stated that Ibn Khaldun did not just hold office as professor and judge, but also played an important role in the politics of North Africa and Spain. He had seen the rise and fall of various governments. He was also an adviser, minister and ambassador. His great experience in life had helped him write a great history in the Muqaddimah. Chamid (2010) also stressed that he is also known as the Father of Sociology as in his discussion about economics, he had to relate to mankind’s well-being. His thoughts are said to be in advance of his time or that he was the precussor of later prominent economic figures such as Adam Smith, Ricardo, Malthus and Keynes.
The book of Ibn Khaldun's Muqaddimah, also known as Prolegomena, as mentioned by Omar (2010) is a sublime and intellectual achievement which defined the historical realities of social and intellectual progress of society. The book Muqaddimah was written in the year 1377AD concerning economic theories, four centuries earlier than An Inquiry into the Nature and Causes of the Wealth of Nations, which the first published in 1776 M by Adam Smith. The book of Muqaddimah also touched on the relationship between division of labor, specialization and wealth creation which lead to prosperity of a nation.
Ibn Khaldun also has contributed to the Western model known as the Laffer curve, see Abbadi (2004). He had also contributed to economic science, which can be divided into four sections, namely, the theory of value, growth theory, market equilibrium and public finance. Karatas (2012) was arguing that he was writings on economics, economic surplus and economic policy are oriented towards economic issues which are still relevant today.

Jaafar, A. B., & Ismail, A. G. (2017). Tax Rate and its Determinants: An Opinion from Ibn Khaldun. International Journal of Academic Research in Business and Social Sciences, 7(4), 792-809.

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