Page 9 - CMA Journal (Mar-Apr 2025)

Exclusive Interview

ICMA: After influencing laws like Huddood and
Zakat, what economic laws should the CII focus on
next?

Chairman CII: The answer to this question has already
been provided earlier. In summary, the Council of
Islamic Ideology's focus, in terms of economics, is not
on any specific law but rather on the entire economic
system and the related laws. With the landmark
decision of the Federal Shariat Court and the approval
of the 26th Constitutional Amendment, it is now
crucial to implement these decisions immediately to
fully establish the economic system along Islamic lines.
ICMA: Should Islamic principles guide taxation,
banking and corporate Laws? How can this be
achieved?
Chairman CII: Islam provides clear principles and
foundations regarding banking, taxation, and
Mr. Muhammad Yasin, Vice President ICMA is presenting a
souvenir to the Chairman Council of Islamic Ideology (CII) commercial laws. In addition to the aforementioned
reports on financial management, the Islamic
Ideological Council has also presented the following
recommendations to the government in its reports:
In this regard, valuable guidance can be drawn from the
aforementioned reports of the Council of Islamic • 12th Report on Islamization of Laws: Fiscal
Ideology, the recent and past rulings of the Federal System and Fiscal Laws
Shariat Court concerning the elimination of interest, and
• 13th Report on Islamization of Laws: Tax Laws
the decisions of the Supreme Court's Shariat Appellate
Bench. These reports and judgments have reviewed the In the first report, after detailing the three fundamental
existing interest-based laws and proposed viable Islamic principles regarding taxation (real need,
alternatives. Therefore, by implementing the equitable assessment and collection, simplicity and
recommendations and directives mentioned therein, the frugality), the following suggestions for reforming the
prevailing banking and commercial laws can be brought existing tax system were presented:
into conformity with Islamic principles.
Pakistan's current taxation system is unjust and does not
ICMA: How can Zakat and Ushr be improved to align with the requirements of Shariah. To bring the
ensure fair wealth distribution? taxation system in line with Shariah, the Council has
proposed the following recommendations:
Chairman CII: Reforms in the systems of Zakat and Ushr
are essential to ensure the fair distribution of wealth. In
this regard, the full implementation of the Zakat and
Ushr Ordinance is necessary. While the ordinance is
being implemented to some extent in matters of Zakat, With the landmark decision of
its enforcement in relation to Ushr is almost negligible.
The Council of Islamic Ideology has proposed several the Federal Shariat Court and the
amendments to this ordinance, and implementing these
suggestions could bring greater transparency to the approval of the 26th
system. The Council has also submitted a report to the
Parliament titled Introduction of Zakat in Pakistan. In Constitutional Amendment, it is
addition, over various periods, the Council of Islamic
Ideology has presented several other valuable now crucial to implement these
recommendations for improving and reforming the decisions immediately to fully
Zakat system across the country. These
recommendations include a summary of Islamic establish the economic system
teachings and principles regarding the collection and
distribution of Zakat. Implementing these proposals along Islamic lines.
could significantly enhance the administration of Zakat
and Ushr.

ICMA’s Chartered Management Accountant, Mar-Apr 2025 7