Taxes do not justify taking an interest-based loan from the state bank
Fatwa No: 262939

Question

Asslamualaykum v.v. I am working in Government company.Hence i am government employee.As company offer me to give HOME LOAN of Rs.1550000/-[fifteen lacs fifty thousands] on 5-6% intrest.I also know that Riba is haram in islam,but being a government company ,every year i pay income tax+profession tax of total Rs.15000-Rs.20000/-app [per year] to government as per rules.So regarding to this deduction of Tax every month from my salary can allow me to take this loan?.As i means Taxes relates with this Home loan on intrest if i take. *If i take this LOAN company will recover it in 30 years [upto my retirement] as per offer. *If Taxes not relates in this case then *If supose i may take Loan then i will pay intrest in this case definately,so then if i will feel that i am paying intrest for my free hours which are spent without work done during my job hours.Then is it allow me to take loan & is it possible as per my niyyat? *At present i am living in my brother house. Kindly show me proper opinion regarding this Loan ,if i am payer of taxes to the goverment as per government rules. Hope i will receive reply from your site through QURAN AND HADISH SHINING WAY. Jajakallah. ANAS A. PATEL.

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and messenger.

As for your inquiry about the usurious loan, it is impermissible for you to apply for an interest-based loan because it is forbidden unless you are forced by a Sharee‘ah-considered necessity or a dire need, as Allaah says (what means) {... and give up what remains [due to you] of interest, if you should be believers.}[Quran 2:278]

Moreover, the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: “Allaah has cursed the one who consumes Riba (i.e. usury or interest), the one who pays it, the one who records it and its two witnesses.” He  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: “All of them are equal in sin.” [Muslim and others]

Besides, Allaah, The Exalted, says about the case of someone who is forced by necessity (what means): {...while He has explained in detail to you what He has forbidden you, excepting that to which you are compelled.}[Quran 6:119]

Indeed, there is no necessity in what you have mentioned. The fact that the government imposes taxes, even if undue on you, does not justify taking an interest-based loan from the state bank and concluding such a forbidden transaction.

It should be noted that it is impermissible for a Muslim employee to be negligent in carrying out his job efficiently. You are obliged either to ask the pardon of your employer about any rights that you owe him, or fulfill that right of his.

Taking a usurious loan and intending to pay the interests in return for that right (which you owe your employer) is impermissible. This is nothing but a satanic scheme to lure you into borrowing money with Riba.

Allaah Knows best.

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