The Federal Board of Revenue (FBR) has decided to challenge the decision of the Council of Islamic Ideology regarding withholding tax in the Supreme Court.
According to sources, the FBR will take the matter to the Supreme Court after consulting legal experts so that the uncertainty created in the tax system can be eliminated.
It may be recalled that a few days ago, in a meeting chaired by the Chairman of the Council of Islamic Ideology, Allama Dr. Raghib Naeemi, the withholding tax was declared un-Islamic. The council had taken the position in its statement that this tax is unfair and tantamount to excess.
On this occasion, the council also expressed reservations about the decision of the Supreme Court dated September 11, 2025, saying that the implementation of withholding tax is not in accordance with Islamic principles.
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