One form of interest

Question

Question: The government imposed a tax on the public on their fields, that a certain quantity of grain would have to be given per bigha (a local unit of land area) of land in one year. Accordingly, people gave the grain as required by the law. Now, after three years, the government, having calculated interest on the grain it had collected, is paying that interest. So should this interest be taken or not? If it is taken, on what should it be spent?

Answer

The public did not give the grain to the government of their own accord; rather, it collected it under its compulsory law, and these people were compelled to give the grain. Then the government, in accordance with its own law, is paying some extra amount under the name of interest; this does not fall within the bounds of forbidden interest.

Source: Fatawa Mahmudiyya

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