ISLAMABAD – Islamic Ideology Council (IIC) has termed withholding tax as un-Islamic, warning that it amounts to oppression against masses.
Chairman Allama Dr. Raghib Naeemi presided over meeting, as council expressed strong reservations, criticizing it unjust and contrary to Islamic principles, urging government to reconsider its imposition immediately. The council’s statement ignited debates across political, religious, and economic circles, with many calling it a landmark declaration on citizens’ financial rights under Islamic law.
Furthermore, it also raised questions on Supreme Court’s September 11 ruling, which mandates payment of non-maintenance (nafaqah) in cases of divorce after marriage but before consummation, calling the decision contrary to the teachings of the Quran and Sunnah.
IIC also strongly opposed the proposed amendments to the Diyat law, rejecting the removal of silver and the use of un-Islamic amounts of gold, insisting that Shariah-mandated quantities of gold, silver, and camels must remain part of the law.
The council approved the use of halal insulin for diabetics but strictly warned against insulin containing pig-derived ingredients, emphasizing the urgent need for appropriate legislation in this regard.
The council’s latest decisions on taxation, law, healthcare, and religious rulings are set to spark widespread debate across legal, medical, and religious circles in Pakistan.
Earlier this year, Federal Board of Revenue denied reports of a 20.5 percent tax on cash transactions exceeding Rs200,000, clarifying that no such levy has been introduced. The confusion surfaced after an amendment in Finance Bill 2025, which disallows 50 percent of claimed expenses for sales where payments above Rs. 200,000 are made in cash or outside banking/digital channels, per invoice.
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