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Islamic Council Calls Withholding Tax on Cash Un-Islamic

5 min read
Legal Expert
Islamic Council Calls Withholding Tax on Cash Un-Islamic
The Council of Islamic Ideology (CII) has declared the withholding tax on money withdrawals or transfers as unjust and un-Islamic. In its 243rd meeting held on September 24, 2025, the council emphasized the need for legislative action to address this issue. Other key decisions included the rejection of proposed amendments to the diyat law, which would have removed silver and substituted gold with non-Islamic quantities. The council reaffirmed that the Islamic amounts of gold, silver, and camels should remain as prescribed in the law. The issue of insulin containing pig-derived ingredients was also discussed. The council recommended avoiding such insulin when halal alternatives are available. On matters of blasphemy, the council proposed that copies of the Quran that have been contaminated should be purified immediately after use for testimony, with appropriate legislation to enforce this. The council also voiced concerns over the Supreme Court’s decision regarding the waiting period (iddah) and maintenance (nafaqah) for divorced women who have not been consummated, stating it contradicted Quranic teachings and Sunnah. Additionally, the Ministry of Religious Affairs’ request to create a ringtone for public awareness regarding the respect for sacred texts during Rabi-ul-Awwal was agreed upon by the council. The meeting was chaired by Dr. Muhammad Raghib Hussain Naeemi, Chairman of the Council of Islamic Ideology. The distinguished members of the council who participated in the meeting included Justice (R) Zafar Iqbal Chaudhry, Dr. Abdul Ghafur Rashid, Sahibzada Pir Khalid Sultan Qadri, Advocate Muhammad Jalaluddin, Allama Hafiz Muhammad Tahir Mehmood Ashrafi, Malik Allah Bakhsh Kilyar, Justice (R) Altaf Ibrahim Hussain Qureshi, Maulana Pir Shamsur Rahman Mashhadi, Allama Muhammad Yousaf Awan, Allama Syed Iftikhar Hussain Naqvi, Professor Dr. Mufti Intikhab Ahmad, Allama Rana Muhammad Shafiq Khan Pasroori, Sahibzada Syed Saeed ul Hassan Shah, Sahibzada Hafiz Muhammad Amjad, Mrs. Fareeda Rahim, and Barrister Syed Atiqur Rehman Shah Bukhari.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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