The Islamic Ideological Council (CII) has clarified that no final decision has been taken regarding the withholding tax on bank transactions in Pakistan.
The council emphasized that the issue was only discussed at a preliminary level, with members expressing differing opinions during the last session.
Several members had shared their views on the matter, but the CII stated that these discussions should not be interpreted as a final ruling or binding directive.
Chairman Allama Dr. Raghib Hussain Naeemi had previously remarked that deducting tax on money seemed excessive and lacked justification under Shariah principles.
It has now directed that financial and Shariah experts be consulted in upcoming meetings before adopting any position, ensuring a detailed review based on expert guidance.
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Earlier reports claiming the CII had formally declared withholding tax un-Islamic caused widespread confusion and media coverage across political and financial circles.
Meanwhile, the Federal Board of Revenue (FBR) has announced plans to legally challenge the recent declaration of Islamic Ideology Council on withholding tax.
FBR Chairman Rashid Mahmood Langrial said the decision of the council would be reviewed before announcing any formal response.
Sources confirmed that FBR has completed all legal preparations, as withholding tax continues to be a crucial source of government revenue.