Does Quran Instruct to Cut off a Thief's Hand?

بِسْمِ اللَّـهِ الرَّحْمَـٰنِ الرَّحِيم

وَالسَّارِقُ وَالسَّارِقَةُ فَاقْطَعُوا أَيْدِيَهُمَا جَزَاءً بِمَا كَسَبَا نَكَالًا مِنَ اللَّـهِ ۗ وَاللَّـهُ عَزِيزٌ حَكِيمٌ

5:38  "the thief, the male and the female, amputate their hands in recompense for what they committed as a deterrent [punishment] from Allah. And Allah is Exalted in Might and Wise.'

فَمَنْ تَابَ مِنْ بَعْدِ ظُلْمِهِ وَأَصْلَحَ فَإِنَّ اللَّـهَ يَتُوبُ عَلَيْهِ ۗ إِنَّ اللَّـهَ غَفُورٌ رَحِيمٌ

5:39 "But whoever repents after his wrongdoing and reforms, indeed, Allah will turn to him in forgiveness. Indeed, Allah is Forgiving and Merciful."

                                                                  صدق الله العلي العظيم

The first verse above constitute one of the often heard controversies about Quran as it,  apparently, orders a clearly sever punishment for the crime of theft.  

I should say that I spent quite some time thinking about this verse since it did not make much sense to me to apply one fixed punishment regardless of the scale of the theft. That is to say, it seems that there is no difference between a petty theft or a large size steeling for cutting off the thief's hand, which does not seem reasonable. 

Looking for other situations in Quran where the words "cutting and hand" are used together, we find the verse 12:31 which narrates part of the story of Joseph when the "first lady" of the time is blamed by the other women in the city for seeking to seduce a slave. Defending herself, she invites the women to a room giving each a knife and some fruit. Then she asks Joseph to walk into the room while the women were peeling their fruits and this is what happens:

فَلَمَّا سَمِعَتْ بِمَكْرِهِنَّ أَرْسَلَتْ إِلَيْهِنَّ وَأَعْتَدَتْ لَهُنَّ مُتَّكَأً وَآتَتْ كُلَّ وَاحِدَةٍ مِّنْهُنَّ سِكِّينًا وَقَالَتِ اخْرُجْ عَلَيْهِنَّ ۖ فَلَمَّا رَأَيْنَهُ أَكْبَرْنَهُ وَقَطَّعْنَ أَيْدِيَهُنَّ وَقُلْنَ حَاشَ لِلَّهِ مَا هَٰذَا بَشَرًا إِنْ هَٰذَا إِلَّا مَلَكٌ كَرِيمٌ

"So when she heard of their scheming, she sent for them and prepared for them a banquet and gave each one of them a knife and said [to Joseph], "Come out before them." And when they saw him, they greatly admired him and cut their hands and said, "Perfect is Allah ! This is not a man; this is none but a noble angel."

Skipping all the lessons that the beautiful story of Joseph entails, the context of this verse can define the phrase "cutting their hand".  That is cutting the skin of their finger or of their hand as it is the only conceivable event that may happen to any one using a knife in a similar situation.

It however, can be equally argued that in verse 5:33 the same combination of words has been used in a very different context of a battle field, where it could most likely be understood as cutting off a hand or a leg of those who fight against God or his messenger in a war.

Based on these two verses (12:31 & 5:33), I acknowledge the fact that the phrase "cutting hand" can have both meanings, inferring from the two situations discussed.  That is, it can mean cutting the skin of a finger or it can also mean cutting off a whole finger/ hand. Particularly because it is mentioned as a punishment for what a thief has acquired.  Therefore, we can not apply this verse if we only consider this phrase semantically.

Perhaps what can shed light on this case, is paying attention to the absence of any scale for this punishment, bearing in mind that God commandments are to save lives and are to elevate our way of life. That is to say, logically it makes no sense to have the same punishment for a petty theft and for a large scale steeling, embezzling a large some of money for example.  Hence, it is sensible to assume that we can only apply this punishment for the largest scale of steeling for which in many countries currently death penalty is given.

From this perspective, this verse 12:31 is actually setting up the most severe punishment for the crime of theft as opposed to being their first penalty.  There have been many people in recent years (or perhaps at all times) who were sentenced to death because of the huge amounts of money that they took from government or from the so called "public money"  while Quran is telling us the penalty for theft with largest scale of anytime is cutting off a hand not death penalty.   I have no doubt those who lost their lives because of their monetary crimes would have been more than happy if they had lost a finger or a hand instead.

I believe, in this way the verse 12:31 not only will save life but it will also be a reasonable punishment that would deter similar crimes, which could potentially devastate a large number of people, and can improve human's communal life.