CII rules bank withholding tax un-Islamic; urges policy corrections

The Council of Islamic Ideology ruled that withholding tax on cash withdrawals or transfers from bank accounts is un-Islamic, arguing there is no Shariah justification for deducting tax on a person’s own deposited money. Chairman Dr Raghib Naeemi said the practice should not be allowed under any interpretation consistent with the Quran and Sunnah. In other decisions, the CII rejected a proposed amendment to Diyat law that would have removed silver as a benchmark, insisting that gold, silver and camels—as prescribed in Shariah—must remain valid standards for blood money. The body also advised diabetic patients to avoid insulin containing pork-derived components where halal alternatives are available. The Council expressed reservations over a recent Supreme Court ruling that linked iddat and maintenance to an unmarried woman in the event of divorce, saying the condition contradicted the Quran and Sunnah. It conditionally permitted the establishment of human milk banks subject to legislation and oversight to prevent misuse. Additional recommendations included legislating for the immediate cleaning of Quran copies used for testimonies that may have become soiled, and developing a Rabi-ul-Awwal ringtone to encourage respect for religious inscriptions. The CII also reviewed a blasphemy case reported to the FIA’s cybercrime wing.