ISLAMABAD – A rift erupted between top religious advisory body and Federal Board of Revenue (FBR) over a tax that affects every single bank account holder in Pakistan.
It started when Council Of Islamic Ideology, under the leadership of Chairman Allama Dr. Raghib Hussain Naeemi, issued a verdict, saying withholding tax deducted on your own money during bank withdrawals and transfers is “excessive and un-Islamic.”
Dr. Naeemi firmly declared that the council, after examining practice against Quran and Sunnah, found absolutely no religious justification for the government to charge citizens a tax on accessing or moving their own already-earned and taxed money. “It is not permissible to deduct this amount in any way,” he asserted, effectively labeling the levy as a violation of Islamic principles.
Despite religious decree, FBR chosen path of confrontation, confirming that all legal preparations are complete to challenge the CII’s ruling in court.
Although FBR Chairman Rashid Mahmood Langrial initially dodged a direct comment during a media interaction at FBR headquarters, stating the matter would be reviewed, high-level insiders revealed the FBR’s panic. He said withholding tax is a “major source of government revenue,” and the tax authority views CII’s decision as a devastating threat to the national treasury.
The impending legal showdown marks an extraordinary collision between fiscal necessity and religious adjudication, leaving the legality of a key government revenue stream hanging precariously in the balance!
Is Withholding Tax Haram? Here’s What Council of Islamic Ideology of Pakistan says
