CII declares withholding tax on transactions ‘un-Islamic’

The Council of Islamic Ideology (CII) on Wednesday declared withholding tax on money transfers and withdrawals “un-Islamic” during a meeting of the body, according to a press release.

The CII made this decision and others at its 243rd meeting today, which was presided over by CII Chairman Allama Dr Muhammad Raghib Hussain Naeemi, the press release read.

“The council declared the withholding tax imposed on withdrawal or transfer of money as excessive and declared it un-Islamic,” the press release read.

As per the Federal Board of Revenue (FBR), withholding tax is an advance payment of tax deducted at the time of economic activities specified under certain sections of the Income Tax Ordinance, 2001 and Sales Tax Act, 1990.

According to the CII, decisions were also taken on matters including components in insulin made from pork, the amendment of the diyat law (blood money) and keeping copies of the Holy Quran clean after they have been used for testimony.

“The council did not agree with the proposed amendment bill [to] the diyat law. The council is of the opinion that the Islamic amounts of diyat, namely gold, silver and camels, should remain included in the law, while the bill has deleted silver and made the un-Islamic amount of gold a standard,” the press release read.

Separately, the [CII] expressed reservations over the decision of a two-member bench of the Supreme Court on September 11, 2025, saying that “making iddah and maintenance mandatory for a non-consummated woman in the event of divorce is against the Quran and Sunnah”, the press release read.

In a landmark judgement, the Supreme Court ruled that a woman’s right to maintenance (Nafaqa) was neither contingent upon consummation or ‘Rukhsati’ (bridal departure) nor was it subject to her husband’s discretion.

Additionally, the CII declared that human milk storage institutions can be established under specific conditions, but noted that there needs to be mandatory legislation first, with the council included in the process, to “prevent corruption”.

At the request of the Ministry of Religious Affairs, the council also recommended that a ringtone should be developed that instructs citizens to respect flags and banners with holy words on them during the month of Rabbiul Awwal.