Withholding Tax on Bank Withdrawals Ruled Un-Islamic

The Islamic Ideological Council (CII) on Wednesday declared that withholding tax on bank withdrawals or transfers is un-Islamic. The Council stated there is no justification in Shariah for taxing someone’s own money held in a bank. Chairman Dr. Raghib Naeemi explained that such a deduction is impermissible under Islamic law. This declaration could affect Pakistan’s tax policies, as withholding tax has long been a key revenue stream for the government.

In a separate ruling, the CII rejected a proposed amendment to the Diyat law. The amendment aimed to exclude silver and retain only gold as the standard for blood money. The Council stressed that all traditional standards—gold, silver, and camels—must remain as prescribed in Shariah. They declared the amendment un-Islamic and urged lawmakers to respect the full scope of Islamic teachings.

The Council also issued guidance on the use of insulin by diabetic patients. It advised avoiding insulin that contains pork ingredients if halal alternatives are available. This aligns with previous CII guidance promoting the use of permissible medical treatments. The ruling encourages pharmaceutical companies and healthcare providers to ensure halal options are accessible.

Additionally, the CII raised objections to a Supreme Court ruling from September 11. The Court had made iddat and maintenance mandatory for unmarried women after divorce. The Council stated that this contradicts both the Quran and Sunnah. It reiterated the need for religious consultation in legal matters involving Islamic principles.

The Council also conditionally approved human milk banks under strict legislation and oversight. It recommended cleaning Qurans used in testimonies and supported a new ringtone for Rabi-ul-Awwal awareness. Lastly, it reviewed a blasphemy case involving Mirza Muhammad Ali Engineer. The Council emphasized continued coordination with religious and legal bodies for future guidance.