Islamic State cuts back jihadis' wages after suffering loss of territory

The dreaded Islamic State terror group has decided to cut the salaries of its fighters by half blaming the "exceptional circumstances", a sign of worsening financial situation of the outfit.

The group's Bayt al-Mal, the treasury ministry, has decided to cut the salaries of its fighters in half due to the "exceptional circumstances" ISIS has been witnessing, The Jerusalem Post said, citing new documents released last month. 

Although the leaflet was published by Bayt al-Mal, the treasury ministry of ISIS, does not go on to describe the reasons behind the move, it is thought to be related to the massive losses it has recently suffered.

After quoting at length from the Quran the pronouncement says: 'So on account of the exceptional circumstances the Islamic State is facing, it has been decided to reduce the salaries that are paid to all mujahideen by half, and it is not allowed for anyone to be exempted from this decision, whatever his position.'

However, the ISIS decision came amid reports of a US-led coalition airstrike this month that destroyed a cash storage facility of the group in Iraq's Mosul city where it had stored "millions" to pay its operatives and for ongoing operations.

Millions of dollars were burned in the strike.

"ISIS' financial situation today is even worse than it was in December when the document came out," the paper said.

In order to deal with the financial damage, the ISIS-appointed governor in Mosul issued a fatwa allowing militants to raise funds from the local citizens by taxing them.

The group said the move would not affect the collection and distribution of Zakat, a religious obligatory tax, the paper said, citing the documents.

To justify its decision, the ISIS cited the Quran, claiming that it prioritises "jihad of wealth," or spending in beneficial or charitable ways, over "jihad of soul", the paper added.