Withholding tax on bank transactions is un-Islamic, says CII

ISLAMABAD: The Council of Islamic Ideology (CII) on Wednesday declared the withholding tax imposed on bank transactions un-Islamic — at a time when the government is trying to achieve the goal of documentation of economy.

In this connection, the CII said the collection of withholding tax on the money that customers withdraw from banks was unfair.

However, the CII later clarified that the members had only held initial discussion on the subject, but admitted that there was difference of opinion.

The government had decided to impose 0.8 per cent withholding tax on non-filers daily in the case of daily cash withdrawals exceeding Rs50,000. It is meant to discouraging cash transactions and promote digital transactions.

At the same time, the measure is intended to encourage individuals to become tax filers.

But some circles are of the view that the move is encouraging the informal economy and increasing currency circulation.

Previously, the CII had declared it un-Islamic to give the first wife the right to annul the marriage contract without permission.

Read more: SC’s marriage law ruling violates Shariah, declares CII

The CII meeting reiterated that males do not need the permission of the existing wife or wives for subsequent marriages as per the Shariah principles, adding that the males can enter into four marriages at one time, without being answerable to anyone including wives.

It’s a developing story. Details to follow