The Council of Islamic Ideology (CII) has issued a formal explanation stating that no final decision has been made on the religious status of tax -taxing tax on bank transactions.
Recent reports and speculations about the council’s position on the matter have been addressed in an explanation issued by the Chairman Desk after the latest meeting of the Council.
According to the official statement, while some members of the council shared their views about the withholding tax during the meeting, there was no consensus or formal order. The council said the matter is underway and will be taken up again at the next meeting, where more expert opinions and additional information will be sought before any decision.
This explanation came between public and media interest when reports came out that the CII had announced a tax on a refund or transfer of money on a refund or transfer on the transfer. In its 243th meeting hero on September 24, 2025, the council allegedly emphasized the need for legislation to resolve the issue, which states that such taxes put inappropriate burden on citizens and contradict the rules of Sharia.
In response to these reports, sources told the proposal that the Federal Board of Revenue (FBR) has decided to challenge the council’s decision in the Supreme Court of Pakistan. The FBR says the withholding tax is an important part of the government’s revenue framework and documents efforts, and wants to clarify the constitutional and legal status of the council’s opinion.
With the CII, it is now clear that no final decision has been made, the debate on the religious and legal status of withholding tax on a refund or transfer is not resolved. The council is expected to review the issue at its next meeting after further consultation and expert input.