Darul Iftaa Mahmudiyyah

Salary package and use of allownace in accordance with Islamic shariah.

· 27 Shaʻban 1421 AH1 min readFatwa 1568English

Question

As part of my salary package, the company offered me a car allowance, pension and medical aid. Withregards to the car allowance, I have to purchase and the asset belongs to me. I took the option for tax benefit. However, I pay interest and am concerned. Should I pay off the capital if I have funds or allow the term to run. With regards to the pension & medicl aid this is compulsory.

Answer

It is not permissible to incur an interest bearing transaction to reduce tax payments.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai
FATWA DEPT.

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/1568
Fatawa SA: https://fatawa.co.za/fatwa/askimam-1568

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