In order to make it clear that the issue is still being investigated and that no definitive decision has been made, the Council of Islamic Ideology (CII) has revoked its previous ruling that withholding tax on bank withdrawals and transfers is not Islamic.
The CII said in a corrigendum released on Wednesday that its previous news release appeared to indicate that the council had rendered a final decision opposing withholding tax.
The council clarified, however, that there was merely a preliminary discussion during which members voiced divergent opinions. It further stated that the issue will now be forwarded to specialists for advice prior to a more thorough discussion at the following meeting.
Hours after the CII’s official press release claiming that withholding tax on banking transactions is “unjust and contrary to Shariah,” the adjustment was made.
