Using interest to pay taxes : interest and debit tax : [1]

Fatawa Question

[Question One] : Assalamu Alaikum Sheikh ! Since you told that the purpose of this debit tax is ambiguous, I asked about it from many professionals in the banking field. As per their statements, the purposes of this tax are as follows : * Discourage cash withdrawal and encourage savings * Discourage the use of cash In his response to this question, whether this debit tax is deductible from the interest, Sheikh Usthaz Mansoor said that : "We, as Muslims maintain a savings account in an interest based bank under compulsion, and therefore should always try to minimize the available balance in the account. So if that debit tax deters us from withdrawing money, it may be deductible as withdrawing money is the much preferred way" Please advise me whether his statement is acceptable or not, and explain your view with this regard. (Please note that Usthaz Mansoor also instructed me to seek your advice with this regard) [Question Two] : I personally want your Fatwa to this question. Please refer the details (purpose of the tax) given in my last mail and be kind enough to explain your view on it. Please note that, though Usthaz Mansoor wishes to seek your advice, it will take lot of time to the question to be sent. Because he is not fluent in computer and if he wants to send any mails to you, someone who is fluent in Arabic typing should type his letter in Arabic and after that only it could be sent to you. Therefore it will take some times to reach you. So please send your Fatwa to my question. Please forgive me that, if I have mentioned anything wrong in my mails. May Allah bless you !

Fatwa

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Publication Date

2007-12-06

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-786667

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