Interest and Rent

Interest and Rent

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Published on

August 8, 2022

I am a CA final student. My question is to Dr. Nejatullah Siddiqi / Dr. Waquar Anwar / Dr. Rahmatullah.

Principle of economics says that in the business labour gets wages, land gets rent, entrepreneur gets profit, and capital/fund gets “interest” as reward. When we present interest-free economy then a question arises: what will be received by the capital?

House / building / land is given on rent then the landlord charges rent from the tenant. How the transaction is different when money is given to somebody and as against his money he charges interest?

When we say interest is forbidden then people counter-question us why rent is not forbidden. Why is discrimination there in respect of interest and rent?

Ansari Kalim Mohammed Suleman

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