Council of Islamic Ideology declares withholding tax against Sharia

The Council of Islamic Ideology (CII) on Wednesday declared withholding tax on money transfers and withdrawals against Sharia (Islamic laws).

At its 243rd meeting chaired by Dr Raghib Hussain Naeemi, the council said imposing withholding tax on bank withdrawals or money transfers was tantamount to “injustice”.

The FBR, however, describes “withholding tax” as 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.

Sources privy to the matter said that the tax collection body decided to move the Supreme Court against the CII’s ruling over the matter.

The CII meeting also discussed matters related to the establishment of human milk banks in the country.

Human milk storage facilities can be established under certain conditions, the CII said, adding that necessary legislation on the matter must come first to prevent evils.

Pakistan’s first Human Milk Bank and Early Childhood Centre was established at the Sindh Institute of Child Health and Neonatology (SICHN) in Karachi in June last year.

The initiative, however, was suspended just weeks later after the issuance of a fatwa (Islamic decree). The SICHN spokesperson had said they would consult the Jamia Darul Uloom Karachi and the CII for further guidance over the operations of the human milk bank.

Meanwhile, the CII also opposed the amendments made to the diyat (blood money) law by the Senate Standing Committee on Law and Justice earlier this month.

The parliamentary committee increased the minimum value of diyat from 30,663 grammes to 45,000 grammes of silver on September 13.

The CII stated that diyat values such as gold, silver, and camel should have been part of the law.

The council also advised against the use of insulin containing pig-derived ingredients by diabetic patients, saying that halal (permissible) insulin was easily available in the markets.

The meeting also discussed the Supreme Court’s September 11 judgment about a woman’s right to maintenance.