By Staff Reporter
ISLAMABAD : The Council of Islamic Ideology (CII), Pakistan’s top advisory body on Islamic law, stirred debate on Wednesday after initially declaring the withholding tax on money transfers and withdrawals “un-Islamic” during its 243rd meeting, only to later clarify that no final decision had been reached.
The council’s deliberations, chaired by Allama Dr. Muhammad Raghib Hussain Naeemi, also touched on issues ranging from insulin derived from pork to amendments in the country’s diyat (blood money) law, reflecting the body’s broad influence on matters of faith and governance.
In a statement issued after the meeting, the CII stated that “the council declared the withholding tax imposed on withdrawal or transfer of money as excessive and declared it un-Islamic.” The statement referred to the withholding tax, an advance tax payment deducted during certain economic activities as outlined in Pakistan’s Income Tax Ordinance, 2001, and Sales Tax Act, 1990, according to the Federal Board of Revenue (FBR). The announcement raised immediate concerns about its potential impact on Pakistan’s tax framework, a critical component of the country’s fiscal policy and the International Monetary Fund’s backed structural reforms.
However, a subsequent clarification from the CII sought to temper the initial statement, emphasising that the matter remained under discussion. “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 clarification read. It added that members agreed to consult experts in the council’s next meeting. “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.”
The back-and-forth underscores the sensitivity of the issue in Pakistan, where Islamic principles often intersect with economic policy. The CII’s initial stance could have implications for the FBR’s revenue collection efforts, particularly as Pakistan navigates economic challenges under scrutiny from international lenders including the IMF. The council’s decision to defer a final ruling suggests an intent to balance religious considerations with practical governance.
Beyond the tax debate, the CII addressed several other issues during its Wednesday meeting. The council rejected a proposed amendment to Pakistan’s diyat law, which governs compensation for victims of murder or bodily harm under Islamic law. The statement noted that the council opposed the bill because it “deleted silver and made the un-Islamic amount of gold a standard,” arguing that the traditional Islamic measures of diyat, gold, silver, and camels, should remain in place.
The CII also weighed in on a recent Supreme Court ruling from September 11, 2025, which declared that a woman’s right to maintenance (nafaqa) in the event of divorce is not contingent on consummation or rukhsati, the traditional bridal departure ceremony. The council expressed reservations, stating that “making iddah and maintenance mandatory for a non-consummated woman in the event of divorce is against the Quran and Sunnah.”
In other decisions, the CII addressed the use of insulin derived from pork, a sensitive issue given Islamic dietary prohibitions. The council also emphasized the need to keep copies of the Holy Quran clean when used for testimony, reflecting its role in safeguarding religious practices. On the issue of human milk storage institutions, the council approved their establishment under “specific conditions” but stressed the need for mandatory legislation to “prevent corruption.” It also called for the CII to be included in the legislative process to ensure compliance with Islamic principles.
At the request of the Ministry of Religious Affairs, the council recommended developing a ringtone to encourage citizens to respect flags and banners bearing holy words during the Islamic month of Rabbiul Awwal, a period of heightened religious observance marking the birth of the Prophet Muhammad (PBUH).
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