KARACHI – Council of Islamic Ideology (CII) declared withholding tax on money transfers and withdrawals “un-Islamic,” soparking new debate in financial and religious circles.
The announcement came during council’s 243rd meeting, chaired by Allama Dr. Muhammad Raghib Hussain Naeemi. He said Withholding tax is excessive and goes against Islamic principles, directly challenging Federal Board of Revenue’s system of advance tax deductions.
The govenrment slapped withholding tax at the time of economic activities specified under certain sections of the Income Tax Ordinance, 2001 and Sales Tax Act, 1990.
CII also tackled other highly debated issues, including insulin made from pork derivatives, controversial changes to the diyat (blood money) law, and rules for handling copies of the Holy Quran used in legal testimony. The CII opposed the proposed diyat amendments, insisting that traditional Islamic forms—gold, silver, and camels—must remain intact, criticizing the bill for removing silver and imposing non-Islamic standards.
Adding to the controversy, the CII openly criticized a Supreme Court ruling from September 11, 2025, which made iddah and maintenance mandatory for women in non-consummated marriages. According to the council, this decision contradicts Quranic teachings, although the court maintains that a woman’s right to maintenance is unconditional.
The council also gave conditional approval for human milk banks but warned that legislation must involve the CII to prevent corruption.
In a surprising twist, the CII suggested creating a ringtone to remind citizens to respect flags and banners with holy inscriptions during the month of Rabbiul Awwal—an idea that has already sparked debates online.
