Fatwa: # 21296
Category: Financial Transactions
Country: South Africa
Date: 26th June 2012

Title

Is it permissible to use interest money to pay RATES and VAT?

Question

  1. Is it permissible to use interest money to pay RATES?
  2. Can interest money be used to pay VAT e.g. I buy a car and VAT is included in the amount, can I use interest money to pay only the VAT?

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

 

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

  1. If the interest money has been accrued through a government bank then the interest money can be used to pay RATES only.

 

  1. If the interest money has been accrued through a government bank then the interest money can be used to pay VAT only.

 

 

And Allah Ta’āla Knows Best

Mufti Hussein Issa,
Mozambique 

 

Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net 

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