CII Declares Withholding Tax on Bank Withdrawals, Transfers as Un-Islamic

The Council of Islamic Ideology (CII) criticized the withholding tax on cash withdrawals and transfers, labeling it “un-Islamic” during its 243rd session on Wednesday. The council, led by Chairman Dr. Muhammad Raghib Hussain Naeemi, deemed the levy exploitative and inappropriate for financial dealings.

The CII also rejected proposed revisions to Diyat (blood money) laws, insisting on retaining the Shariah standards of gold, silver, and camels. It opposed removing silver and using a non-Shariah standard for gold.

Regarding healthcare, the council encouraged avoiding porcine-based insulin for diabetes, citing the availability of halal alternatives. They also recommended purifying Qur’ans used in court oaths and called for related legislation.

The CII requested involvement in future lawmaking concerning sensitive ethical issues, such as human milk. They also approved developing a ringtone promoting respect for religious banners during Rabi Al-Awwal, following a request from the religious affairs ministry.

Withholding tax (WHT) is a preemptive tax deduction during specific economic activities, outlined in Pakistan’s tax laws. WHT on cash transactions is automatically deducted by banks and remitted to the government. The CII advises the Pakistani government on the Islamic compatibility of laws.