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FBR announces to challenge Council of Islamic Ideology’s stand on withholding tax in Supreme Court

Muhammad Abid (Web Desk Reporter) by Muhammad Abid (Web Desk Reporter)
September 24, 2025
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Islamabad: The Federal Board of Revenue (FBR) has decided to approach the Supreme Court against the recent decision of the Council of Islamic Ideology.

According to FBR sources, questions have started to arise on the tax policy after the decision of the council, hence it has become inevitable to present the matter in the Supreme Court. Officials say that this step is necessary to save the tax system from uncertainty.

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It should be noted that in the previous meeting, the Council of Islamic Ideology had declared withholding tax as un-Islamic. According to a statement issued in the meeting chaired by Council Chairman Allama Dr. Raghib Naeemi, this tax is tantamount to excess and is not in line with Islamic principles.

The council had also expressed reservations over the September 11 decision of the Supreme Court and recommended the government to review the tax system.

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