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

· 6 Shaʻban 1433 AH1 min readFatwa 21296English
Finance and Commerce

Question

Is it permissible to use interest money to pay RATES?

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.

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

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

Answered by
Mufti Hussein Issa
Checked & approved by
Mufti Ebrahim Desai
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