ISLAMABAD (Kashmir English): The Council of Islamic Ideology (CII) on Wednesday clarified that no final decision had been taken yet on the issue of withholding tax on money transfers and withdrawals after the body earlier declared it to be un-Islamic.
The CII made the earlier decision and others at its 243rd meeting today, presided over by CII Chairman Allama Dr Muhammad Raghib Hussain Naeemi, the press release read.
“The council declared the withholding tax imposed on withdrawal or transfer of money as excessive and declared it un-Islamic,” the press release said.
As per the Federal Board of Revenue (FBR), withholding tax is an advance payment of tax deducted at the time of economic activities specified under certain sections of the Income Tax Ordinance, 2001, and Sales Tax Act, 1990.
However, a clarification issued later read, “Regarding today’s meeting of the CII, there was an impression that the council had formed a final opinion on the withholding tax, whereas in fact, a few members had an initial discussion on it, in which the members had different opinions.”
“The members said that they would consult experts on this in the next meeting.”
“Therefore, it was decided that in the upcoming meeting of the council, it should be discussed in detail, and the opinions of the relevant experts should be sought. The council did not take any decision on the issue under discussion.”
As per the earlier press release, decisions were also taken on matters including components in insulin made from pork, the amendment of the diyat law (blood money), and keeping copies of the Holy Quran clean after they have been used for testimony.
