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Council of Islamic Ideology Labels Cash Withdrawal Tax Un-Islamic

The council framed its new guidance as a drive to align state policy with Sharia.

Overview

  • The council declared the withholding levy on cash withdrawals to be unjust under Islamic principles and urged the government to reconsider it.
  • Pakistan’s FY2025-26 budget raised the rate on cash withdrawals by non-filers to 1% from 0.6% and bars non-filers from opening new bank accounts.
  • It rejected proposed diyat amendments that remove silver and alter gold amounts, insisting Sharia-prescribed measures using gold, silver and camels remain in law.
  • The body sought a formal role in legislation for human milk banks under strict conditions and recommended rules for handling Quranic manuscripts used for oaths.
  • It endorsed halal-sourced insulin for diabetics, advised against pig-derived formulations, and called for review of a recent Supreme Court maintenance ruling it says conflicts with Quran and Sunnah.